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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
DES; credentialing; application; deficiencies
Purpose
Requires the Department of Economic Security (DES) to grant an applicant whose credentialing or recredentialing application was denied 14 days to correct any application deficiencies that led to the denial and an opportunity for reevaluation of the application.
Background
DES requires individual providers and provider agencies to apply to become a DES qualified vendor as a condition of contracting to provide services through the Division of Developmental Disabilities (DDD). Applicants must submit specified information and documentation demonstrating eligibility and ability to provide program services, which DES reviews to determine whether the applicant may be authorized to provide program services. If a qualified vendor application is denied, the applicant may protest the denial and appeal the decision through an administrative appeals process (DES; 6 A.A.C. 6 art. 21).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires DES to give an applicant whose credentialing or recredentialing application was denied an opportunity to correct any application deficiencies that led to the denial.
2. Grants an applicant 14 days to correct any deficiencies after receiving an application denial notice.
3. Requires DES to reevaluate a credentialing or recredentialing application denial for an applicant that corrects all application deficiencies within 14 days after receiving a denial notice.
4. Stipulates that, if DES denies an application after reevaluation and does not initiate a contract within 14 business days, the applicant may appeal the decision through the statutory administrative hearings and appeals process.
5. Requires DES to adopt rules to implement the credentialing deficiency correction process by June 30, 2027.
6. Defines credentialing as the process of verifying the qualifications, standards and any other requirements a vendor must have to be eligible to contract with DES to provide services to DES program recipients.
7. Becomes effective on the general effective date
Amendments Adopted by Committee of the Whole
1. Expands the credentialing deficiency correction process to apply to any applicant, rather than only qualified vendors.
2. Grants DES 14 business days after denying a corrected credentialing application to initiate a contract before an applicant may appeal the decision through the statutory administrative hearings and appeals process.
3. Requires DES to adopt rules to implement the credentialing deficiency correction process by June 30, 2027.
Senate Action
HHS 2/11/26 DP 5-2-0
Prepared by Senate Research
March 9, 2026
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