2021 Legislative & budget summaries

2021 Legislative summary

Below are those bills we have followed and/or taken action on during the 2021 Legislative Session. Each bill has a brief summary. For more details regarding the bills, click on the bill number. Click here to jump to 2021-2022 State Budget Summary

Bill NameKeywordsSponsorsStatusSummary

HB2016

child care assistance; education; training

UDALL

Transmitted to Governor: 04/22 Signed: 04/28 Chapter: 287 The Dept of Economic Security (DES) is authorized to waive a portion or the entirety of the work requirements to continue to provide supplemental child care assistance to a person who has been receiving assistance & who has enrolled full time in an accredited educational institution, remedial educational activity or employment training program leading to a vocational, technical or trade certification or an associate degree or bachelor's degree, & the educational or training program is reasonably related to employment goals. The person is required to demonstrate satisfactory progress to DES in the education or training activity.

HB2538

supported decision-making; supporter obligations

LONGDON, DUNN, et al

Failed: 5/26/21Adds a new article to Title 14 (Trusts, Estates and Protective Proceedings) regulating "supported decision-making agreements," defined as an agreement between an adult with a "disability" (defined as a physical or mental impairment that substantially limits one or more major life activities) and a "supporter" (defined) to enable the adult to make life decisions without impeding the adult's self-determination.

HB2454

telehealth; health care providers; requirementsCOBB, OSBORNE, et alTransmitted to Governor: 04/29 Signed: 05/05 Chapter: 32Modifies the requirements for health & disability insurers to cover telehealth services. Insurers are required to reimburse health care providers at the same level of payment for equivalent services whether provided through telehealth using an audio-visual format or in-person care. Does not apply to a telehealth encounter provided through a platform sponsored or provided by the insurer. Insurers cannot require a health care provider to use a telehealth platform sponsored or provided by the insurer as a condition of network participation. The definition of "telehealth" is expanded to include the use of an audio-only telephone encounter between an insured and a health care provider if specified conditions are met. Establishes a 27-member Telehealth Advisory Committee on Telehealth Best Practices to review standards for telehealth best practices and relevant peer-reviewed literature, and to adopt telehealth best practice guidelines and recommendations. The Committee is required to submit a report of its findings & recommendations to the Governor & the Legislature by December 1, 2021. Beginning January 1, 2022, insurers are required to cover services provided through an audio-only telehealth encounter if the Committee recommends that the services may appropriately be provided in that manner. Before January 1, 2022, insurers are required to cover services provided through an audio-only telehealth encounter if that service is covered by Medicare or AHCCCS when provided in this manner. A health care provider regulatory board or agency is prohibited from enforcing any statute, rule or policy that would require a health care provider who is licensed by that board or agency and who is authorized to write prescriptions to require an in-person examination of the patient before issuing a prescription, except as specifically prescribed by federal law. Consistent with the best practice guidelines adopted by the Committee, health care providers are required to make a good faith effort to use best practices in determining whether a health care service should be provided through telehealth instead of in person, and in determining the communication medium of telehealth. Network adequacy standards required by state or federal law cannot be met by an insurer through the use of contracted health care providers who provide only telehealth services and do not provide in-person health care services in Arizona. Health care providers who are licensed in another state are authorized to provide telehealth services to a person in Arizona if the provider complies with a list of requirements, including maintaining liability insurance and following community of care standards. By September 1, 2021 or 30 days after the effective date of this legislation, whichever is earlier, the Department of Health Services is required to develop a three-year pilot program that allows the delivery of acute care services to patients in the patient's home by licensed hospitals in Arizona working in coordination with licensed home health professionals. By March 31, 2023, the Department of Insurance and Financial Institutions is required to report specified information on telehealth encounters to the Legislature. Emergency clause.

HB2542

veteran suicides; annual reportWILMETH, BLACKMAN, et alTransmitted to Governor: 04/08 Signed: 04/14 Chapter: 223Information that the Department of Health Services must include in the annual report on veteran suicides is expanded to include utilization and encounter data for a nonprofit veterans' services organization that provides services related to reducing suicides among Arizona's military and veteran populations.

SB1059

mental disorders; considerations; involuntary treatmentBARTOTransmitted to Governor: 04/08 Signed: 04/14 Chapter: 225 A person who has a substance use disorder without any co-occurring mental disorder cannot be considered for involuntary treatment. A person who has an intellectual disability cannot be considered for involuntary treatment unless the person also has a mental disorder that would benefit from treatment.

SB1090

outpatient treatment centers; behavioral healthPACETransmitted to Governor: 03/18 Signed: 03/24 Chapter: 122 Brief Summary: An employee of a licensed outpatient treatment center that provides behavioral health services is authorized to provide behavioral health services at a private office or clinic that is operated by an exempt health care provider under specified circumstances, including that the services are provided to a patient of the exempt health care provider or the licensed outpatient treatment center, & the licensed outpatient treatment center & the exempt health care provider have a written agreement specifying the terms of the provided services. The licensed outpatient treatment center is required to report to the DHS any unexpected death, self-injury or other injury of a patient under the care of its employee that occurs on the premises of the exempt health care provider and whether the injury required medical attention, & DHS is authorized to report the incident to the licensing board of any health care professional involved in the incident.

SB1094

substance abuse treatment; AHCCCSPACETransmitted to Governor: 03/18 Signed: 03/24 Chapter: 122 AHCCCS replaces DHS as a joint administrator with the DCS community programs for substance abuse treatment assistance.

SB1097

pupils; excused absences; mental healthBOWIE, MARSH, et alTransmitted to Governor: 03/15 Signed: 03/18 Chapter: 65ADE is required to identify an absence due to the mental or behavioral health of a pupil as an excused absence.

SB1266

competency evaluation; records; appointmentsPETERSENTransmitted to Governor: 03/22 Signed: 03/26 Chapter: 139If the court determines that reasonable grounds exist for a competency examination & the defendant is charged with only a misdemeanor, the court is required to appoint one or more mental health experts to examine the defendant, reduced from two or more experts.

SB1270

insurance; prescription drugs; step therapyBARTOTransmitted to Governor 6/30: Signed 7/9/21 Chapter 139Ensuring step therapy protocols are based on widely accepted clinical guidelines, so that medical expertise dictates requirements.

SB1327

tax credit; affordable housingGOWAN, ALSTON, et alHeld in HouseEstablishes a credit against individual and corporate income taxes & insurance premium taxes for projects that qualify for the federal low-income housing tax credit and that are placed in service from and after June 30, 2022.

SB1376

schools; curriculum; mental healthBOWIE, ALSTON, et alTransmitted to Governor, Signed 07/10 Chapter 445 The State Board of Education must require that all health education instruction include mental health instruction.

SB1388

behavioral health facilities; respite; exemptionsBARTOTransmitted to Governor: 05/04 Signed: 05/10 Chapter: 355A behavioral health residential facility is authorized to provide respite care to a child for increments of fewer than 5 consecutive days, & no more than 12 days in a 90- day period, without a medical history and physical examination. An outpatient clinic is authorized to provide respite care to a child for up to 10 continuous hours per day between 6 AM & 10 PM without a medical history & physical examination. For those children receiving only respite services, the behavioral health residential facility or outpatient clinic is exempt from a list of specified licensure requirements in relation to the child's respite stay.

SB1389

incapacitated person; special investigator NOW: incapacitated person; guardian ad litemBARTOTransmitted to Governor: 04/22 Signed: 04/28 Chapter: 303In a domestic relations proceeding, if the court finds that there is reasonable cause to believe that an adult party is or may be an "incapacitated person" or a "person in need of protection" (both defined elsewhere in statute) & that the party is or may be in need of guardianship &/or conservatorship, the court is authorized to appoint a guardian ad litem to conduct an investigation concerning the need for a guardian &/or conservator.

SB1514

appropriation; emergency shelter beds; seniors NOW: emergency shelter beds; seniorsLIVINGSTON, ALSTON, et alTransmitted to Governor: 05/27 Vetoed: 05/28The Arizona Department of Housing would have been required to provide emergency shelter beds in western Maricopa County to shelter & serve homeless seniors who are at least 55 years of age. AZDH would have been required to contract with a single Arizona nonprofit provider that met a list of specified requirements relating to housing homeless individuals. AS VETOED BY GOVERNOR. In his veto message, the Governor stated that his priority is passing a budget, and that he does not intend to sign any additional bills until that happens. See SB 1848 transmitted to Governor 6/30, Signed 6/30, Chapter 399

SB1716

Arizona state hospital NOW: Arizona state hospital; admission; governanceBARTOTransmitted to Governor: 05/27 Vetoed: 05/28Would have made various changes relating to ASH (the State Hospital). See SB1851, transmitted to Governor 6/30, Signed 6/30, Chapter 402

SB1786

prisoners; mental health transition programBARTOPassed the Senate, Held in HouseADC is required to establish a mental health transition pilot program that provides eligible inmates with transition services in the community. ADC is required to contract with private or nonprofit entities to provide eligible inmates with mental health transition services, & is required to place up to 500 eligible inmates in the pilot program each year. ADC is required to adopt rules to implement the program, & required provisions are listed. Must conduct an annual study on recidivism of program participants & submit a report to the Governor & the Legislature by December 31 of each year. The pilot program self-repeals July 1, 2026. Appropriates $1.3 million from the general fund in each of FY2021-22, FY2022-23, FY2023-24, and FY2024-25 to ADC for the pilot program.

SB1790

appropriation; behavioral health residential facilityGOWANPassed the Senate, Held in HouseAppropriates $10.2 million from the general fund in FY2021-22 to AHCCCS to construct a behavioral health residential facility that contains both secure & unsecure housing units on ASH campus.

SB1839

guilty except insane; court jurisdiction.BARTOTransmitted to Governor: 06/28 Signed: 06/29, Chapter 390Beginning July 1, 2023, the superior court is given exclusive jurisdiction over all persons who were under the supervision of the Psychiatric Security Review Board (PSRB) on that date.

SB1848

emergency shelter beds; seniors.LIVINGSTONTransmitted to Governor 6/30, Signed 6/30 Chapter 399The Arizona Department of Housing (AZDH) is required to provide emergency shelter beds in western Maricopa County to shelter & serve homeless seniors who are at least 55 years of age. Allocates $5.0 M allocated in budget.

SB1851

Arizona state hospital; admission; governance.BARTOTransmitted to Governor: 06/30, Chapter 402Makes various changes relating to ASH. Expands the information that DHS is required to include in the annual report of ASH. By October 1, 2021, DHS is required to issue a request for information for a surveillance system for ASH that includes both audio & video capability & adequate storage of files. Establishes a 10-member Joint Legislative Psychiatric Hospital Review Council to review, analyze & make recommendations regarding a list of specified issues related to psychiatric treatment in Arizona. The Council is required to submit a report of its findings & recommendations to the Governor & the Legislature by December 31, 2021, & by December 31, 2022, & self-repeals September 1, 2023.

SCR1018*

chronic serious mental illness; careBARTOTransmitted to Secretary of State: 05/03The issue of supporting community-based efforts to implement a more clinically appropriate & cost-effective system of care for individuals living with chronic serious mental illness, support community-based efforts to enhance the ability of public & private psychiatric hospitals & residential treatment facilities to provide higher-level, clinically appropriate care for individuals living with chronic serious mental illness, & support community-based efforts to enhance the ability of ASH , private psychiatric hospitals & residential treatment facilities to provide higher-level, clinically appropriate care for individuals living with chronic serious mental illness who clinically qualify for but cannot obtain services at the ASH.

SB1124

contributions in aid of constructionGOWANTransmitted to Governor 6/30, Chapter 430Establishes the affordable housing corporate & individual income tax credit for “qualified projects” in Arizona that qualify for the federal low-income housing tax credit that are placed in service from and after June 30, 2022, in an amount equal to at least 50 percent of the amount of the federal credit. Department of Revenue is required to allocate a total of $4 million of tax credits in a calendar year. The credit self-repeals January 1, 2026. Establishes an income tax credit and an insurance premium tax credit of at least 50 percent of the amount of the federal low-income housing credit for a qualified project for which the Department of Housing has issued an eligibility statement. Establishes requirements to claim the credit. If the amount of the credit exceeds taxes due, the unused amount may be carried forward for up to five consecutive tax years. The credit self-repeals January 1, 2026. Other provisions related to tax credits for small businesses & for tribal postsecondary education institutions.

FY 2021-2022 state budget summary

AgencyOngoing Changes

AHCCCS

  • Adjusts the baseline by $228.3 M (GF) due to increase FMAP allocations 
  • Adds $3.0 M (GF) for IT Operating Funds for each of the next 3 years
  • Allocates $6.0 M (GF) for GME in FY 22 with $1.6 M dedicated to Rural GME & $1.3 M dedicated to Urban GME and $9.0 M (GF) in FY 23 & FY 24
  • Increases for Elderly/Physically Disabled Providers with $13.3 M (GF) with $7.0 M for SNF for FY 22, F& 23 & FY 24 
  • Adds $60.0 M in Expenditure Authority for Supported Housing if the Section 1115 waiver is approved
  • Provides $200,000 (OF) for SMI Housing Administration & requires report by members served & on waiting list for services
  • Shifts Prescription Drug Rebate Fund ($16.7 M GF) for FY 22, FY 23 & FY 24 while adding $16.7 M (OF) from Prescription Drug Rebate Fund
  • Adds funding of $.5 M (GF) in FY 23 with an increase to $.6 M (GF) in FY 23 and the $.8 M (GF) in FY 24 for Newborn Screening
  • Sets aside $6.0 (OF) for Opioid Treatment in FY 22
  • Adds 1 time fund from Prescription Drug Rebate Fund $78,000 (OF) for PMMS Roadmap
  • Moves $1.0 M (TF) from Traditional Medicaid to CRS Operating budget
  • Removes 1-time fund of $8.0 (GF) for children’s behavioral health (this funding was appropriated last year with non-lapsing provision)</ul>

DES

  • Adds $1.0 M (GF) for FY 22 - FY 24 for Area Agencies on Aging Providers
  • Allocates $1.5 M (GF) to draw down federal funds allocated to Area Agencies on Aging
    Allocates $15.4 M (GF) for FY 22, FY 223 & FY 24 for DD Providers (Reallocates $15.0 M of the base funding) as well as allocates $5.1 M (OF) for DDD state funding Long Term Care Costs
    Provides $1.0 M (GF) in Homeless Youth Funding to start in FY 24
  • Adds a 5% Salary increase for 4,900 FTEs for $2.3 M (GF) for FY 22, FY 23 & FY 24
  • Provides 1-time funding $.5 M (GF) for FY 22 for After School/Summer Youth Program Funding as well exempts from non-lapsing
  • Sets aside in FY 22 $1.0 M (GF) for the State Long-Term Care Ombudsman as ongoing
  • Establishes a Sexual Violence Services Fund by adding $8.0 M (OF)
  • Adds to the baseline $14.5 M (TANF) due to Pandemic Assistance
  • Enhances the baseline by adding to the baseline $1.6 M (OF) for the Child Care Development Grant
  • Adds $1.0 B (OF) for Child Care Development Fund due to the ARP with these funds designated as non-lapsing
  • Establishes a Return to Work 

DHS

  • Provides $1.6 M (GF) for 16 FTEs for FY 22, FY 23 & FY 24 for Long Term Care Surveyors
  • Adds $250,000 (GF) for additional High Risk Perinatal visit for FY 22, FY 23 & FY 24 as well as allots $5.8 M (OF) using Prop 108 funds for the additional screening tests
  • Adds $100,000 (OF) for expanding Child Fatality Review Team 
  • Allocates $1.0 M for funding for Alzheimer’s Research in FY 22, FY 23 & FY 24
  • Allocates $1.0 M (GF) for adoption/birth certificate records
  • Moves $2.0 M (GF) from the Biomedical Research Support rather than OF
  • Establishes a $40 K (GF) to provide Guilty Except Insane Monitoring for each of the FY 22 thru FY 24
  • Allots 1-time funding of $160,00 (GF) for Cognitive Decline/Caregiver Modules for Risk Factor Survey
  • Earmarks $100,000 (OF) for 1 time funding FY 22 & FY 23 for Homeless Pregnant Women Services by using Health Services Lottery Fund
  • Sets aside $1.5 M in FY 22 & FY 23 for Family Health Pilot Program with program for biological or adoptive parents under age 2 including the unborn with restrictions on referrals for abortion services with a requirement there will be 2 nonprofit agencies
  • Reduces ER Medical Services Fund by $1.9 M (OF) by replacing with Prop 207 Funds
  • Moves $310,00 (OF) from the Health Services Licensing Fund  to the ASH Hospital Fund
  • Designates $200,000 (OF) for mobile heart screenings in rural AZ

DCS

  • Increases Salary for Caseworks by $5.4 M (GF) for FY 22 thru FY 24 
  • Adds $19.2 M (GF) 1-time funds for FY 22 & FY 23 for higher congregate care provider rates/new settings
  • Backfills by $5.9 M (GF) for loss of federal fund loss for 14-day reimbursement
  • Increases by $941,900 (OF) for non-contracting licensees dur to HB 2399
  • Adds $5.1 M (OF) in Child Care Development Block Grant Funds
  • Adds. $90.4 M (OF) in Child Care Development Block grants
  • Removes 1-time litigation cost of ($2.6 M) (GF) since the case has been settled
  • Expands expenditure authority for the CMDP by $180.5 M (TF)

ADC

  • Allocates $250,000 (GF) in FY 22 & FY 23 and goes to $200,000 (GF) in FY 24 to expand the Braille Program
  • Adds $18.7 M (GF) in FY 22, $21.1 M (GF) in FY 22 & $28.3 M (GF) in FY 24 to close beds at Florence & shift costs
  • Provides $1.6 M (GF) in each year FY 22 to FY 24 for a new classification of Corporal
  • Enhances the salary for Correctional Officer by 5% with a $2.0 K (GF) additional increase for Sergeant that would add $30.7 M (GF) in each year FY 22 thru FY 24
  • Adds $1.3 M (GF) in funding for each year for Pilot Transition Program targeted to SMIs who will be AHCCCS eligible upon release from jail (outlined in Criminal Justice BRB)
  • Increases Contracted services line item by $28.0 M (GF) in each year FY 22 to FY24
  • Accounts for rent savings from building demolition with $600,000 (GF) savings in FY 23 & FY 24
  • Allocates $17.3 M (GF) for 1-time radio replacement & $3.9 M (GF) 1 time Ballistic & Stab Vest Replacement
  • Designates $5.0 M (GF) 1-time Substance Abuse Treatment Expansion
  • Allots 1-time, non-lapsing $15.0 M (GF) for Medical Staffing Augmentation

Judiciary

  • Adds $258,800 (GF) in each year FY 22- FY 24 for IT staff for handling Orders of Protection
  • Allocates $221,000 GF in each year FY 22- FY 24 for to expand Pima County’s dependency alternative program 
  • Provides $1. 0 M (GF) in each year FY 22- FY 24 for Probation Incentive Payments for Counties
  • Increases by $243,800 (GF) for Adult Intensive Probation Growth in caseload for FY 22 to FY 24
  • Raises Probation Salary by $4.3 M (GF) in each year FY 22 to FY 24 prior to a projected deficit in FY 22

Veteran Services

  • Adds 6 FTE for Benefits Counselors with $732,000 (GF) and 1 time of $42,000 (GF) for FY 22, 23 & 24
  • Allocates $3.6 M (OF) for Operating Costs for New Veterans’ Homes in Flagstaff/Yuma
  • Distributes from the Veterans’ Income Tax Settlement Fund $100,000 (OF) for Veteran Suicide Prevention
  • Increases $1.0 M (OF) from the Veterans’ Trust Fund to increase Tucson Operating Capacity
  • Designates $495,300 (OF) from Veterans’ Trust Fund for Rehabilitation Services for Veterans
  • Allocates $25.0 M (GF)for the NW Veterans Home in the Capital Budget

DJC

  • Provides a 5% salary increase for Youth Correctional Officers with $1.6 M (GF) set aside for each year FY 22- FY24

DOA

  • Establishes a 1-time 2-year Pilot program for K-12 Transportation Grants with $10.0 M (GF) for FY 22 & $20.0 M (GF) in FY 23 that allows districts & charter schools to provide grants to parents

Treasurer

  • Transfers from the DPS budget to Treasurer $2.5 M (OF) to assure interoperability for School Safety Programs (Maricopa, Navajo, Yavapai & Mohave counties
  • Allocates $1.5 M (OF) for interoperability for Sheriffs in Graham, Greenlee, Gila & Pinal Sheriffs counties