Arizona 2023 2023 Regular Session

Arizona Senate Bill SB1710 Comm Sub / Analysis

Filed 03/02/2023

                      	SB 1710 
Initials AG 	Page 1 	Health & Human Services 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
Senate: HHS DPA 7-0-0-0 | 3
rd
 Read 27-2-1-0 
 
SB 1710: state hospital; governing board; governance 
Sponsor: Senator Gowan, LD 19 
Committee on Health & Human Services 
Overview 
Creates the Arizona State Hospital Governing Board (Governing Board) and transfers the powers, 
duties and responsibilities of the Arizona State Hospital (ASH) from the Arizona Department of 
Health Services (DHS) to the ASH Governing Board and ASH Director effective January 1, 2025. 
Directs ASH to admit patients based on clinical need for treatment and forbids any limit on 
admission based on a patient's county of residence. 
History 
ASH, a division of DHS, is a 260-bed facility that provides long-term inpatient psychiatric treatment 
to individuals with mental illnesses, personality disorders or emotional conditions who are under 
a court order to receive treatment. ASH is divided into 3 separate facilities: 1) The Civil Hospital; 
2) The Forensic Hospital; and 3) The Arizona Community Protection and Treatment Center 
(ACPTC).  
Patients receiving treatment at the Civil Hospital have been court-ordered to receive involuntary 
treatment as a result of having been determined to be a danger to themselves or others, gravely 
disabled or persistently and acutely disabled. Patients receiving treatment at the Forensic Hospital 
are court-ordered for either pre-trial or post-trial treatment as a result of involvement with the 
criminal justice system due to a mental health issue. ACPTC supervises and treats persons 
classified as sexually violent persons (A.R.S. Title 36, Chapter 2, Article 1).  
The Joint Legislative Psychiatric Hospital Review Council (Council) adopted a set of 
recommendations related to ASH. One of them being to consider whether ASH should be 
extricated from DHS and operated by an appointed board (2022 Council Final Report).   
Provisions 
Director of the Arizona State Hospital 
1. Establishes the ASH Director. (Sec. 8, 13) 
2. Removes the role of the ASH Superintendent and assigns applicable duties and 
responsibilities to the ASH Director. (Sec. 8, 10, 13, 15-20, 23, 26, 27 and 29) 
3. Requires the ASH Director to be appointed by and under the supervision of the Governing 
Board. (Sec. 13) 
4. Declares the ASH Director as the Chief Administrative Officer of ASH. (Sec. 13) 
5. Requires compensation to be paid to the ASH Director as determined by statute. (Sec. 13) 
6. Applies the same qualifications as the ASH Superintendent to the ASH Director. (Sec. 13) 
7. Requires the ASH Director with the Governing Board's approval to appoint a Chief Medical 
Officer. (Sec. 13) 
8. Requires the Chief Medical Officer to report directly to the ASH Director. (Sec. 13)    	SB 1710 
Initials AG 	Page 2 	Health & Human Services 
9. Permits the ASH Director, after consultation with the Arizona Department of Administration, 
to take all necessary steps to enhance the highest and best use of ASH property, including 
entering into short-term lease agreements with third parties to occupy or renovate existing 
buildings and entering into long-term lease agreements to develop the land and buildings. 
(Sec. 25) 
10. Directs the ASH Director to deposit any monies collected from contracts and lease 
agreements into the ASH Charitable Trust Fund. (Sec. 25) 
11. Directs the ASH Director to provide to the Governing Board: 
a) an estimate of the probable daily per capita costs of treating and maintaining each 
category of ASH patients for the next ensuing year in January of the following year;  
b) clinical assessment of ASH programs upon request; and 
c) ASH's maximum funded capacity and percentage allocation formula for the current fiscal 
year. (Sec. 15) 
12. Transfers the authority to administer the ASH Fund from DHS to the ASH Director. (Sec. 30) 
13. Directs the ASH Director, rather than DHS, to deposit monies in the ASH Fund to the specified 
accounts. (Sec. 30) 
ASH Governing Board 
14. Creates the Governing Board. (Sec. 8, 14) 
15. Transfers the authorities, powers, duties and responsibilities of ASH from DHS to the 
Governing Board. (Sec. 9, 11, 16-18, 20, 22, 27, 29 and 34)  
16. Allows the Governing Board to remove the ASH Director only for cause. (Sec. 13) 
17. Outlines additional powers and duties of the Governing Board. (Sec. 14) 
18. Requires the Board to consist of five Governor-appointed members and outlines experience 
qualifications. (Sec. 14) 
19. Forbids no more than three members of the same political party or residents of the same 
county from serving on the Governing Board. (Sec. 14) 
20. Directs Governing Board members, prior to appointment by the Governor, to submit a full set 
of fingerprints for purpose of obtaining a state and federal criminal records check. (Sec. 14) 
21. Allows the Arizona Department of Public Safety to exchange the fingerprint data with the 
Federal Bureau Investigation. (Sec. 14) 
22. Outlines prohibited purposes for Governing Board membership. (Sec. 14) 
23. Specifies that Governing Board members serve five-year terms, expiring on the third Monday 
in January of the appropriate year. (Sec. 14) 
24. Asserts that the Chairperson of the ASH Independent Oversight Committee will serve as a 
nonvoting member of the Governing Board and will not be counted for the purpose of 
determining quorum. (Sec. 14) 
25. Requires the Governing Board to meet at least once every month. (Sec. 14) 
26. Requires Governing Board Members to: 
a) sign an agreement to comply with all confidentiality requirements of matters of the 
Governing Board; and 
b) sign a conflict-of-interest statement identifying and disclosing any potential conflict of 
interest. (Sec. 14)    	SB 1710 
Initials AG 	Page 3 	Health & Human Services 
27. Allows a Governing Board member to be removed only for cause. (Sec. 14) 
28. Stipulates that a Governing Board member that is removed for cause must be provided written 
notice and an opportunity to respond. (Sec. 14) 
29. Permits the Governor to remove a Governing Board member based on written findings that 
specify the reason for removal. (Sec. 14) 
30. Provides a list of state employees that will serve as emergency members of the Governing 
Board if it does not have enough members to take official action. (Sec. 14) 
31. Requires the Governing Board to administer the laws of Arizona relating to ASH. (Sec. 14) 
32. States that Governing Board members are eligible to receive compensation for performing 
official duties. (Sec. 14) 
33. Establishes the State Hospital Donations Fund for the benefit of ASH patients and requires 
the ASH Director to administer the fund, which is continuously appropriated. (Sec. 20) 
34. Specifies that any donations received by the Board for the benefit of ASH patients must be 
deposited into the State Hospital Donations Fund. (Sec. 20) 
35. Directs the Governing Board, at least 30 days before issuing a request for proposals to 
renovate or develop ASH property, to hold a public hearing to receive community and provider 
input regarding the highest and best use of the property. (Sec. 25) 
36. Directs the Governing Board to report, to the Joint Committee on Capital Review (JCCR), the 
terms, conditions and purpose of any lease or sublease agreement entered into relating to 
ASH lands or buildings or the disposition of real property, as well as the associated fiscal 
impact on the Governing Board and any revenues generated by the agreement. (Sec. 25) 
37. Instructs JCCR to review any lease or sublease agreement entered into by the Governing 
Board that relates to ASH lands or buildings or the disposition of real property. (Sec. 25) 
38. Outlines the initial terms for Governing Board members as follows: 
a) one term ending January 1, 2027; 
b) two terms ending January 1, 2028; and 
c) subsequent terms as prescribed by statute. (Sec. 33) 
Miscellaneous 
39. Directs ASH to admit patients based on clinical need for treatment and prohibits any limit on 
admission based on a patient's county of residence. (Sec. 9) 
40. Repeals the requirement that there be a legally available funded bed at ASH in order for the 
Director of a local mental health treatment agency assigned to supervise and administer a 
patient's treatment to request that the court amend the patient's order to place the patient for 
treatment at ASH. (Sec. 28) 
41. Stipulates that this legislation does not alter the effect of any action or impair the valid 
obligations of DHS relating to ASH that existed before January 1, 2025. (Sec. 34) 
42. Asserts that DHS administrative rules and orders relating to ASH remain in effect until 
superseded by administrative action by the Governing Board. (Sec. 34) 
43. Specifies that all administrative matters, contracts and judicial and quasi-judicial actions of 
DHS relating to ASH are transferred to the ASH Governing Board and retain the same status. 
(Sec. 34)    	SB 1710 
Initials AG 	Page 4 	Health & Human Services 
44. Implies that all ASH-issued certificates, licenses, registrations, permits and other indicia of 
qualifications and authorities relating to ASH retain their validity for the duration of their terms. 
(Sec. 34) 
45. Transfers all ASH equipment, records, furnishings, data, investigative findings, obligations 
and appropriated monies that remain unexpended and unencumbered on January 1, 2025, to 
the Governing Board. (Sec. 34) 
46. Transfers all personnel under the state personnel system and employed by DHS relating to 
ASH to comparable positions and pay classifications in the respective administrative units to 
the Governing Board on January 1, 2025. (Sec. 34) 
47. Requires the Legislative Council Staff to prepare proposed conforming legislation to be 
considered by the Fifty-Sixth Legislature, Second Regular Session. (Sec. 34) 
48. Removes the following: 
a) ASH from DHS's authority; 
b) the role of the ASH Superintendent; 
c) DHS as it relates to ASH; 
d) DHS's responsibility of submitting the financial statement of affairs for ASH; and 
e) the ASH Superintendent's authority to supervise the nurse training school in connection 
with ASH. (Sec. 7, 8 and 12)  
49. Defines terms. (Sec. 14) 
50. Modifies terms. (Sec. 26) 
51. Repeals statute relating to various DHS statutory references. (Sec. 4) 
52. Repeals statute that allows DHS to enter into a five-year contract with a private entity to 
administer ASH and deliver client services. (Sec. 21) 
53. Contains an effective date of January 1, 2025. (Sec. 36) 
54. Makes technical changes and conforming changes. (Sec. 1-3, 5-13, 15-20, 22-24 and 29-32) 
 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note