Assigned to HHS                                                                                                           AS PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1345

health facilities; anonymous complaints; prohibition

(NOW: health facilities; licensure; surveys)

Purpose

Establishes timelines for Department of Health Services (DHS) licensure of health care institutions and for review and submittal of third-party accreditation survey results for certification. Authorizes DHS to set initial licensure inspection fees by rule.

Background

Upon receipt of a health care institution license application, DHS must conduct an inspection of the institution and issue or deny a license based on compliance with statutory and regulatory requirements. If deficiencies are identified, DHS may issue a provisional license and require the applicant to implement a plan of correction. In lieu of a compliance inspection, certain health care institutions may submit proof of accreditation by an independent, nonprofit accrediting organization (A.R.S. §§ 36-424 and 36-425).

Statute authorizes the Director of DHS, by rule, to establish nonrefundable health care institution application and licensing fees, including late payment fees following a grace period (A.R.S. § 36-405).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Requires DHS to approve or deny an initial health care institution license application within 90 days of receipt.

2. Requires DHS to review and submit third-party accreditation survey results to the Medicare administrative contractor for certification within 30 days of receipt, in accordance with U.S. Centers for Medicare and Medicaid Services (CMS) requirements.

3. Allows the Director of DHS to establish, by rule, fees for initial licensure inspections of health care institutions.

4. Makes conforming changes.

5. Becomes effective on the general effective date.

Amendments Adopted by Committee of the Whole

· Removes the Arizona Health Care Cost Containment System from the prohibition on accepting or investigating anonymous complaints.

Amendments Adopted by the House of Representatives

1. Removes the prohibition on DHS accepting or investigating anonymous complaints against health care institutions unless specified conditions apply.

2. Requires DHS to approve or deny health care institution license applications within 90 days of receipt.

3. Requires DHS to review and submit third-party survey results to the Medicare administrative contractor for certification within 30 days of receipt.

4. Allows the Director of DHS to establish, by rule, fees for initial licensure inspections of health care institutions.

5. Makes conforming changes.

Senate Action House Action

HHS                2/11/26      DP       5-2-0                   HHS                3/23/26      DPA     7-5-0-0                            

3^rd Read          2/25/26                  17-9-4                 3^rd Read          4/27/26                    44-13-2-0-1

Prepared by Senate Research

April 27, 2026

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