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Arizona Legislature Passes Bill Targeting Health Care Red Tape

June 15, 2026

By Matthew Holloway |

A bipartisan bill aimed at reducing overlapping health care regulations and establishing statewide standards for behavioral health technicians is headed to Gov. Katie Hobbs after clearing the Arizona Legislature with broad support.

SB 1162, sponsored by Sen. Hildy Angius (R-LD30), would require the Arizona Department of Health Services (ADHS) and the Arizona Health Care Cost Containment System (AHCCCS) to review duplicative licensing, compliance, inspection, auditing, and reporting requirements affecting health care institutions.

SB 1162 passed the Senate on final reading Tuesday in a 28-1 vote after previously passing the House in April by a 49-8 vote. The bill was transmitted to the governor on Wednesday.

Angius said the measure is intended to reduce duplicative regulation while maintaining oversight and patient safety.

“Government works best when it focuses on protecting people, not creating layers of unnecessary bureaucracy,” Angius said in a statement. “SB 1162 takes a commonsense approach by identifying regulatory overlap between state agencies and reducing administrative burdens that pull health care providers away from patient care.”

Under the bill, ADHS and AHCCCS would be required to review areas of overlap involving licensing, certification, enrollment requirements, on-site surveys, inspections, audits, compliance activities, data collection, reporting requirements, corrective action processes, and enforcement procedures applicable to health care institutions.

The legislation directs the two agencies to identify opportunities to eliminate or reduce duplicative, redundant, or inconsistent requirements while maintaining patient safety and regulatory oversight. It also requires the agencies to coordinate or align policies, procedures, and operational practices to minimize administrative burdens on health care institutions.

The bill states that nothing in the measure requires action inconsistent with federal Medicaid conditions of participation, conditions of payment, or other applicable federal requirements.

SB 1162 would also require ADHS to submit a written report to the House and Senate Health and Human Services committees by Dec. 31, 2026, and every four years thereafter. The report must summarize the review’s findings, identify any duplication or overlap, and include recommendations for statutory, regulatory, or administrative changes.

The measure also adds a new article to state law governing behavioral health technicians. Under the bill, a behavioral health technician must be at least 18 years old, possess a high school diploma or equivalent, and successfully complete required background checks before serving in the role.

Before providing supervised direct services, behavioral health technicians would be required to complete training covering behavioral health system orientation, confidentiality and compliance, professional boundaries and ethics, crisis response and de-escalation, and trauma-informed and recovery-oriented care.

The bill defines a behavioral health technician as a person employed by a behavioral health facility or a hospital authorized to provide psychiatric services who provides behavioral health services under the supervision or clinical oversight of a licensed behavioral health professional or a registered nurse working within the nurse’s scope of practice.

The legislation also limits behavioral health technicians to delegated clinical and support functions consistent with their demonstrated training and competence, as well as the policies and procedures of the employing behavioral health facility or hospital.

The House summary of the bill states that a behavioral health technician would not be authorized to diagnose medical or behavioral health conditions, prescribe medications, or provide services beyond those delegated and supervised by a licensed behavioral health professional or licensed registered nurse.

“At the same time, this legislation strengthens standards for behavioral health technicians who play a critical role in serving some of Arizona’s most vulnerable individuals,” Angius said. “Patients deserve qualified professionals, clear accountability, and a behavioral health system that puts care first.”

SB 1162 was first introduced in January and received unanimous support in the Senate Health and Human Services Committee. It passed the Senate in March on a 29-0 vote before being amended in the House. After the House approved the amended bill, the Senate concurred with the changes on Tuesday.

Sen. Angius’ bill now awaits action from Gov. Hobbs.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

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