Assigned to HHS & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1302
reimbursement rate increases; appropriations
Purpose
Appropriates $50,000,000 from the state General Fund (state GF) and $84,201,000 in
Medicaid Expenditure Authority in each of FYs 2026 through 2030 to the Department of
Economic Security (DES) for reimbursement rate increases for home and community-based
services (HCBS) and room and board services for individuals with intellectual and developmental
disabilities.
Background
The Director of DES is responsible for developing and annually revising a statewide plan
and initiating statewide programs and services for persons with developmental disabilities.
Services include child, adult, residential and resource services. An Arizona resident with a
developmental disability, supported by medical and psychological documentation, is eligible to
apply for developmental disabilities programs, services and facilities operated, licensed and
supervised by DES (A.R.S. §§ 36-554 and 36-559).
The Division of Developmental Disabilities (DDD) is the division of DES that empowers
individuals with intellectual and developmental disabilities to lead self-directed, healthy and
meaningful lives. DDD provides supports and services for eligible Arizonans diagnosed with one
of the following developmental disabilities: 1) autism; 2) cerebral palsy; 3) epilepsy; 4) cognitive
or intellectual disability; 5) Down syndrome; or 6) are under the age of six and at risk of having a
developmental disability. DDD serves more than 50,000 people with developmental disabilities
and their families throughout Arizona each year (DDD).
DES is responsible for issuing HCBS certificates to all provider agencies providing
services to DDD members. HCBS certification ensures that all individuals providing direct care
have met qualifications for assisting individuals with developmental disabilities. HCBS include,
but are not limited to, attendant care, day treatment and training, habilitation, personal care, respite
care, therapy services and transportation (DDD).
S.B. 1302 appropriates $50,000,000 from the state GF to DES in each of FYs 2026 through
2030.
Provisions
1. Appropriates $46,000,000 from the state GF and $84,201,000 in Medicaid Expenditure
Authority in each of FYs 2026 through 2030 to DES for reimbursement rate increases for
HCBS to individuals with intellectual and developmental disabilities. FACT SHEET
S.B. 1302
Page 2
2. Appropriates $4,000,000 from the state GF in each of FYs 2026 through 2030 to DES for
reimbursement rate increases for room and board services for individuals with intellectual and
developmental disabilities.
3. Requires DES to provide reimbursement rate increases for HCBS provided to individuals with
intellectual and developmental disabilities so that each service receives an increase.
4. Directs DES, prior to increasing provider rates, to engage community stakeholders regarding
DES’s plans to increase reimbursement rates.
5. Requires DES to report the increased provider rates to the Joint Legislative Budget Committee
(JLBC) by September 1 of each year monies are appropriated and to implement the increase
by October 1 of that year.
6. Directs DES, in each FY monies are appropriated, to issue a nationally recognized survey to
its qualified vendors to collect data on the state of the direct support professional workforce
for HCBS, including the length of employment, turnover rates and vacancy rates, and report
the findings to JLBC when three years of data is collected.
7. Requires JLBC to review the direct support professional workforce data to determine if
improvements have occurred in the average length of employment, turnover rates and vacancy
rates of the direct support professional workforce for HCBS.
8. Authorizes JLBC to recommend that the FY 2029 and FY 2030 appropriations not occur if
improvements have not been made in the direct support professional workforce for HCBS.
9. Declares that the Legislature intends for the appropriations to be considered ongoing funding
in future years.
10. Becomes effective on the general effective date.
Prepared by Senate Research
February 17, 2025
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