Arizona 2024 2024 Regular Session

Arizona Senate Bill SB1311 Comm Sub / Analysis

Filed 02/02/2024

                    Assigned to HHS 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Sixth Legislature, Second Regular Session 
 
FACT SHEET FOR S.B. 1311 
 
mental health; oversight; data; documentation. 
Purpose 
Declares the Arizona Health Care Cost Containment System (AHCCCS) the agency 
responsible for monitoring, overseeing and evaluating state agencies that provide mental health 
services. Modifies requirements and procedures relating to mental health prepetition screenings 
and court-ordered evaluations. 
Background 
AHCCCS serves as Arizona's Medicaid agency which offers qualifying Arizona residents 
access to healthcare programs. AHCCCS's duties include: 1) developing and implementing a 
county-by-county system that includes access to hospitalization and medical services for members; 
2) contracting, overseeing, reviewing and providing technical assistance to contactors;  
3) developing a system of accounts and controls for AHCCCS to prevent the unnecessary use of 
covered health and medical services; 4) assisting in the formation of medical care consortiums to 
provide covered medical services for a county; 5) establishing and managing a system to ensure 
the quality of care delivered by AHCCCS; 6) establishing and managing a system to prevent fraud 
by members, subcontractors, contractors and noncontracting providers; 7) coordinating benefits to 
any member; 8) developing and maintaining outlined programs and systems; and 9) establishing 
the eligibility process for a Medicare low-income subsidy (A.R.S. § 36-2903). 
Statute authorizes any individual to apply for a court-ordered evaluation of a person alleged 
to be, as a result of a mental disorder, a danger to self or others or a person with a persistent, acute 
or grave disability that is unwilling or able to under a voluntary evaluation (A.R.S.  
§ 36-520). Upon receiving an application for evaluation, a screening agency, before filing a 
petition for court-ordered evaluation, must provide a prepetition screening within 48 business 
hours, when possible, to determine: 1) if there is reasonable cause to believe the allegations of the 
applicant for the court-ordered evaluation; 2) if the person will voluntarily receive evaluation at a 
scheduled time and place; and 3) if the person has a persistent or acute disability, a grave disability 
or is likely to present a danger to self or others until the voluntary evaluation (A.R.S. § 36-521). 
If there is a cost associated with AHCCCS oversight and evaluation of state agencies 
providing mental health services, there may be an impact to the state General Fund. 
Provisions 
AHCCCS Oversight 
1. Declares AHCCCS the agency responsible for monitoring, overseeing and evaluating state 
agencies that provide mental health services to ensure that services, whether provided directly 
by a county or a contracted service provider, are provided in a timely, effective and efficient 
manner and are in compliance with all county, state and federal laws and rules.  FACT SHEET 
S.B. 1311 
Page 2 
 
 
2. Requires AHCCCS mental health oversight authority to be clearly delineated in all applicable 
contracts. 
3. Directs AHCCCS to audit the performance of state agencies providing mental health services 
and impose penalties, including civil penalties, suspension and termination of contracts, on 
agencies found to be: 
a) noncompliant with county, state or federal law or rule; or 
b) not performing services in a timely, effective and efficient manner. 
4. Requires the AHCCCS Director to adopt rules and prescribe forms for collecting, reporting 
and analyzing information and data for purposes of tracking and analyzing the effective and 
efficient use of mental health services provided by state agencies.  
5. Requires the AHCCCS Director, in establishing the appropriate information to be collected 
and forms to be used, to seek the advice of a representative group of stakeholders, including:  
a) screening, evaluation and treatment agencies; 
b) regional behavioral health agencies;  
c) hospitals and physicians providing behavioral health services; 
d) family members; and 
e) persons with lived experiences in screening, evaluation and treatment services. 
6. Requires the forms used to be reviewed and, if necessary, revised on a regular basis, at least 
once a year. 
7. Requires AHCCCS to analyze the information and data collected monthly and report it to the 
Governor, President of the Senate and Speaker of the House of Representatives at least once 
each year. 
8. Specifies that the rules and prescribed forms are to be completed on an expedited timeline 
established by AHCCCS, but no later than December 31, 2025. 
9. Directs AHCCCS to file, with the Governor, President of the Senate and Speaker of the House 
of Representatives: 
a) by December 31, 2024, an interim report that describes AHCCCS's progress in completing 
requirements associated with agency mental health oversight; and 
b) by December 31, 2025, a final report confirming the completion of all requirements. 
Mental Health Screening and Evaluation 
10. Removes the requirement that a screening agency destroy an application that has not been acted 
on for six months. 
11. Stipulates that, if it is determined that a proposed patient does not need evaluation, the medical 
director of the screening agency or the medical director's designee must:  
a) make a written statement of the reasons why the proposed patient does not need an 
evaluation; and 
b) retain the application together with the medical director's statement and any records or 
reports concerning the prepetition screening.  FACT SHEET 
S.B. 1311 
Page 3 
 
 
12. Removes the requirement that a screening agency consider whether there is reasonable cause 
to believe the allegations of the individual applying for court-ordered evaluation and instead 
requires the agency to consider whether the person is a danger to self or others as a result of a 
mental disorder. 
13. Requires a screening agency that denies an evaluation to state the denial in writing on the 
application form and include confirmation by the medical director of the agency or a designee. 
14. Requires a screening agency to assist a proposed patient with finding specific evaluation or 
treatment services available, including direct referrals, if the person: 
a) does not meet the criteria for court-ordered evaluation;  
b) provides reasonable grounds to believe has a mental disorder;  
c) is in need of further evaluation or treatment; and  
d) is able and willing to pursue private or public evaluation or treatment services available in 
the community. 
15. Requires the medical director of a screening agency who determines that a person no longer 
needs an evaluation after a petition has already been prepared to: 
a) make a written statement of the reasons why the evaluation was determined to be no longer 
necessary; and 
b) retain the petition together with the medical director's statement.  
16. Requires the medical director of an evaluation agency or the medical director's designee to 
retain an application for which emergency admission was denied and to state the reasons for 
the denial. 
17. Specifies that an application for emergency admission must be retained after the admitted 
person has been released, together with a written statement by the medical director of the 
evaluation agency stating why the release was appropriate. 
18. Requires the medical director of an evaluation agency, after the release of a person being 
evaluated on an inpatient basis, to make a written statement explaining why further evaluation 
was not appropriate and why release was. 
19. Requires copies of written statements by evaluation agency medical directors explaining the 
release of a patient to be: 
a) filed with the court that entered the order for evaluation; 
b) filed as a part of the court record; and 
c) made a part of the patient's medical record. 
Miscellaneous 
20. Makes technical and conforming changes. 
21. Becomes effective on the general effective date. 
Prepared by Senate Research 
February 2, 2024 
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