Arizona HB 2176: health facilities; licensure; complaints; investigations

Bill Text

Chapter 0083 - 572R - S Ver of HB2176 

 Senate Engrossed 
 House Bill

 health facilities; 
 licensure; complaints; investigations

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 CHAPTER 83

 HOUSE BILL 2176

AN 
ACT

Amending section 36-420.05, Arizona 
Revised Statutes; Amending Title 36, chapter 4, article 2, Arizona Revised 
Statutes, by adding sections 36-424.04 and 36-424.05; relating to health 
care institutions.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 36-420.05, Arizona Revised 
Statutes, is amended to read:

START_STATUTE36-420.05. Legal action or sale; change of ownership; effect on licensure

A. The director may continue to pursue any court, 
administrative or enforcement action against a licensee even if the health care 
institution is in the process of being sold or transferred or has closed.

B. The department may deny an application for a 
health care institution license if either:

1. The applicant, the licensee or a 
controlling person has a health care institution license that is in an 
enforcement action or court action related to the health and safety of the 
residents or patients.

2. The department has determined for 
reasons other than those specified in paragraph 1 of this subsection that 
the issuance of a new license is likely to jeopardize resident or patient 
safety because the applicant or anyone in a business 
relationship with the applicant, including stockholders and controlling 
persons, either:

1. Has had a license to operate a 
health care institution denied, revoked or suspended or a license or 
certificate issued by a health profession regulatory board pursuant to title 32 
or issued by a state agency pursuant to chapter 6, article 7 or chapter 17 of 
this title denied, revoked or suspended.

2. Has a licensing history of recent 
serious violations occurring in this state or in another state that posed a 
direct risk to the life, health or safety of patients or residents.

C. The department may deny the approval of a change 
in ownership of a currently licensed health care institution if the department 
determines that the transfer of ownership, whether involving a new 
direct owner or new indirect owner, may jeopardize 
patient safety because the new direct owner or new indirect 
owner or anyone in a business relationship with the new direct owner or new 
indirect owner, including stockholders and controlling persons, either:

1. Has had a license to operate a 
health care institution denied, revoked or suspended or a license or 
certificate issued by a health profession regulatory board pursuant to title 32 
or issued by a state agency pursuant to chapter 6, article 7 or chapter 17 of 
this title denied, revoked or suspended.

2. Has a licensing history of recent 
serious violations occurring in this state or in another state that posed a 
direct risk to the life, health or safety of patients or residents. END_STATUTE

Sec. 2. Title 
36, chapter 4, article 2, Arizona Revised Statutes, is amended by adding 
sections 36-424.04 and 36-424.05, to read:

START_STATUTE36-424.04. Complaint investigations; basis of complaints; time limit; 
exception 

A. When 
entering a health care institution for a complaint investigation that is filed 
with the department, the department shall notify the licensee of the general 
nature of the complaint or complaints WHILE ensuring that the department does not 
release any protected health information or information that may identify the 
complainant.

B. IN CONDUCTING A compliance 
inspection OR INITIAL COMPLAINT INVESTIGATION, THE DEPARTMENT MAY NOT CONSIDER 
OR INVESTIGATE ANY ALLEGED VIOLATION THAT OCCURRED MORE THAN twelve months 
BEFORE THE DATE THAT THE complaint was submitted to the department.

c. The department may initiate a 
complaint investigation for incidents that occurred more than twelve months 
before the date the complaint was submitted if the complaint involves an 
allegation of abuse as defined in section 13-3623. END_STATUTE

START_STATUTE36-424.05. Statement of deficiencies; informal dispute resolution; written 
decision; amended statement

A. The department shall include in 
any statement of deficiencies that is issued after a COMPLIANCE inspection OR 
COMPLAINT INVESTIGATION THE CITATION of THE STATUTE OR RULE THAT APPLIES TO 
EACH IDENTIFIED DEFICIENCY.

B. If a licensee receives a statement 
of deficiencies following a COMPLIANCE inspection or complaint investigation 
and the licensee wishes to dispute any identified deficiency, the licensee, 
during the informal dispute resolution process, shall indicate to the 
department within ten business days after receiving the statement of 
deficiencies each deficiency the licensee is disputing and provide:

1. An explanation demonstrating, or 
documentation showing, that the licensee was in compliance with the identified 
deficiency at th