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Arizona’s New Behavioral Healthcare Laws – Part 3

As part of a three-part series. Read the first installment here and the second installment here.

In 2024, the Arizona legislature passed five new Arizona laws directly affecting behavioral health care in Arizona. These laws run the gamut between refining definitions, requiring peer specialist trainings, new requirements for court-ordered evaluation and treatment, increased retention of documentation, and expanding guardians’ rights.

Part 1 of this series covered SB1062 and SB1309, while Part 2 highlighted SB1311 and SB1609. Part 3 focuses on HB2744 and other key legal updates impacting Arizona behavioral healthcare:

(5) HB2744: involuntary treatment; guardians; agents; rights

      • Clarifies rights for guardians and agents who have the authority to make personal, medical, and treatment decisions for a patient (pursuant to a court order or validly executed mental health Power of Attorney [POA] in which the principal has been found incapable of giving informed consent):
        • It grants guardians and agents the right to:
          • Be notified of any petition for treatment, motion for amended court order, application for continued court-ordered treatment and request for judicial review.
          • Provide the court with their position regarding the relief sought in any proceeding identified above, if allowed, and provide the court with any relevant information to help the court make a determination.
          • Share relevant information with any agency providing inpatient or outpatient screening, evaluation, or treatment to the patient.
          • Participate, when appropriate, in treatment and discharge planning with the inpatient or outpatient treatment providers. A.R.S. § 36-504.01.
        • Additionally, the petitioner for evaluation must serve a copy of the petition, affidavits in support of the petition, and the notice of the hearing on any guardian identified in the petition at least two calendar days prior to the hearing. A guardian may provide a written acknowledgment of receipt in lieu of personal service. The statute also clarifies, however, that failure to serve the guardian is not grounds for dismissing the petition. A.R.S. § 36-536(E).
      • Requires that if a screening agency determines that the application for evaluation should be denied – or if the application is accepted but the screening agency declines to file a petition for COE – the screening agency must comply with the requirements of A.R.S. § 36-521(C). The screening agency must attempt to notify the applicant that it intends to release the proposed patient (if the screening took place in a facility operated by the screening agency). After this attempted notification, the screening agency must document the time and method of the notification or of an unsuccessful attempt to notify the applicant. If the applicant requests, the medical director of the screening agency must provide the reason for the denial or decision not to file if either (1) the disclosure is not opposed by the person who was screened, or (2) the person who was screened is deemed to lack capacity to make the decision to allow the disclosure and it is deemed to be in their best interest. A.R.S. § 36-520(J).
      • Clarifies that if both a court order for treatment and a guardianship with additional mental health authority pursuant to Section 14-5312.01 exist simultaneously, the treatment and placement decisions made by the treatment agency assigned by the court are controlling, unless the court finds otherwise. A.R.S. § 36-540(E)(7).
      • Allows the guardian, during any period of outpatient treatment, to file a detailed report with the court that addresses whether the patient is complying with the terms of the court order for treatment, whether the outpatient treatment plan is still appropriate, and whether the patient needs inpatient treatment. A copy of the report must be given to the patient’s attorney and the outpatient treatment agency. After review, if the court determines there is reasonable cause to believe that the patient is not complying with the court order, that the outpatient treatment plan is no longer appropriate, or that the patient needs inpatient treatment, the court must set a conference or hearing or take other appropriate action as identified in A.R.S. § 36-540(E)(5). A.R.S. § 36-540(E)(7).
      • Signed into law on 4-10-2024. You can see the full text of changes here: https://legiscan.com/AZ/text/HB2744/2024

But wait…there’s more!

Additional important legal updates occurred in 2024 that impact Arizona behavioral health providers, agencies, and patients:

      • The Arizona Court of Appeals issued its decision in In Re: MH2023-004502 on October 31, 2024 clarifying who can and cannot serve as an acquaintance witness to support a petition for involuntary treatment. You can read the Court of Appeals’ Opinion here. Please also see my previous article on earlier related case law.
      • HHS finalized revisions to 42 CFR Part 2 (the changes took effect in April 2024 and compliance is generally required by mid-February 2026). Please see my article summarizing the changes and helpful practice pointers here.
      • The White House unveiled a final rule on Mental Health Parity further building on MHPAEA and the proposed regulations laid out by the DOL, Treasury, and HHS in July 2023 to enforce and monitor it. To learn more about mental health parity and the Federal Parity Act, MHPAEA, click here.

There is always movement in the world of behavioral health. We’ll see what 2025 has in store!

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About the Author:

An attorney in Dickinson Wright’s Phoenix office, Erica Erman focuses her practice on behavioral health care and the intersection of municipal laws with health care regulations. Her work includes administrative hearings, HIPAA compliance, Stark and AKS regulations, state licensing, contract drafting, and health care transactions. Drawing from her experience litigating state and federal False Claims Act cases, she also provides counsel on the Parity Act and psychiatric urgent care. She can be reached at 602-889-5342 or EErman@dickinsonwright.com. Her biography can be accessed here.