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REFERENCE TITLE: health boards; third-party contracting |
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State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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SB 1587 |
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Introduced by Senators Shamp: Petersen
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An Act
amending title 32, chapter 32, article 1, Arizona Revised Statutes, by adding section 32-3230.02; relating to health professionals.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 32, chapter 32, article 1, Arizona Revised Statutes, is amended by adding section 32-3230.02, to read:
32-3230.02. Health profession regulatory boards; contracting requirements; administrative functions; report
A. Notwithstanding any other provision of law, each health profession regulatory board shall contract with one or more private sector entities, if available, to perform the following administrative functions on behalf of the health profession regulatory board:
1. Accepting initial and renewal applications for licensure, certification or registration, as applicable.
2. Reviewing applications for completeness and compliance with statutory and regulatory requirements.
3. Communicating with applicants to obtain any necessary additional information or documentation to complete applications.
4. Making initial determinations on application deficiencies and notifying applicants of any required corrections.
5. Except as provided in subsection B of this section, accepting and processing application fees on behalf of the health profession regulatory board and transmitting to the respective health profession regulatory board all fees that are required to be paid by statute or rule.
B. A private sector entity that is contracted pursuant to this section may charge applicants a reasonable service fee to perform the functions described in subsection A of this section. The private sector entity shall retain the service fees, which are not considered state monies and are not subject to deposit in any state account.
C. This section does not transfer, delegate or diminish the authority of a health profession regulatory board to perform the following functions, which remain the sole responsibility of the health profession regulatory board:
1. Conducting criminal background checks on applicants.
2. Investigating complaints against licensees, certificate holders or registrants, as applicable.
3. Taking disciplinary actions, including license denial, suspension and revocation and other enforcement measures.
4. Adopting rules related to the practice of the respective health profession.
5. Making final determinations on the approval or denial of applications for licensure, certification or registration.
D. Each health profession regulatory board that enters into a contract pursuant to this section shall establish performance standards and oversight measures to ensure that the private sector entities comply with the requirements of this section and applicable state laws and the rules adopted pursuant to those statutes.
E. Each health profession regulatory board that has not entered into a contract with a private sector entity as required by this section on or before September 1, 2026 shall submit a report to the president of the senate, the speaker of the house of representatives and the governor and provide a copy of the report to the secretary of state that provides the reasons why a contract has not been executed and the health profession regulatory board's plan for future compliance.