Assigned to HHS & APPROP FOR COMMITTEE ARIZONA STATE SENATE Fifty-Sixth Legislature, Second Regular Session FACT SHEET FOR S.B. 1101 appropriations; secure behavioral health facilities Purpose Appropriates $25,000,000 from the state General Fund (state GF) to the Arizona Department of Administration (ADOA) for the support and construction of secure behavioral health residential facilities. Appropriates an additional $10,000,000 from the state GF and $18,768,700 from the Medicaid Expenditure Authority to the Arizona Health Care Cost Containment System (AHCCCS) to increase the secure behavioral health provider rate. Background Beginning January 1, 2024, if a factfinder finds that a defendant is dangerous and should be involuntarily committed to treatment, the court must dismiss the charges against the defendant without prejudice and commit the defendant to a secure state mental health facility (Laws 2022, Ch.352; A.R.S. § 13-4521). A secure state mental health facility is a secure behavioral health residential facility (SBHRF) that is licensed by the Department of Health Services to provide secure 24 hour on-site supportive treatment and supervision by staff with behavioral health training for persons who have been determined to be seriously mentally ill, chronically resistant to treatment for a mental disorder and who are placed in the SBHRF pursuant to court order (A.R.S. § 13-4501 and 36-425.06). Laws 2022, Chapter 313 appropriated $25,000,000 to AHCCCS to support five SBHRFs to provide secure on-site supportive treatment to persons who are determined to be seriously mentally ill, chronically resistant to treatment and placed in an SBHRF pursuant to court order. Appropriations for construction or other permanent improvements do not lapse until the purpose for which the appropriation was made has been accomplished or abandoned, unless the appropriation is available during the entire fiscal year without an expenditure from or encumbrance on the appropriation (A.R.S. § 35-190). In FY 2024, the $25,000,000 appropriation made to AHCCCS in FY 2023 was reduced to remove funding for the construction of SBHRFs (Laws 2023, Ch.133). S.B.1101 appropriates $25,000,000 from the state GF in FY 2025 to ADOA and $10,000,000 from the state GF in FY 2025 to the AHCCCS. Provisions 1. Appropriates $25,000,000 from the state GF in FY2025 to ADOA for the support and construction of SBHRFs. 2. Requires SBHRFs to provide secure on-site supportive treatment to persons who are determined to be seriously mentally ill, chronically resistant to treatment and placed in an SBHRF by court order. FACT SHEET S.B. 1101 Page 2 3. Outlines where SBHRFs are required to be located as well as the number of SBHRFs to be located in each geographical area as follows: a) three SBHRFs in the central geographic service area; b) one SBHRF in the north geographic service area; and c) one SBHRF in the south geographic service area. 4. Requires ADOA to allocate up to $5,000,000 for each SBHRF and to prioritize SBHRFs that can operate within 12 months of the effective date of this legislation. 5. Appropriates $10,000,000 from the state GF and $18,768,700 from the Medicaid Expenditure Authority to AHCCCS in FY 2025 for an ongoing secure behavioral health provider rate increase. 6. Becomes effective on the general effective date. Prepared by Senate Research January 26, 2024 MM/KS/slp