SB 1853 Arizona Senate · 57th Legislature - Second Regular Session

health care; 2026-2027.

This bill updates Arizona laws to regulate overdose and disease prevention programs and establishes a new fund for rural health improvements. It allows cities and organizations to run programs that provide free needles, naloxone kits, and educational materials to reduce disease spread and encourage drug treatment enrollment. The legislation also prohibits the use of opioid settlement funds to finance safer smoking equipment for drug users. Additionally, it creates the Arizona Rural Health Transformation Fund, which requires the state to hold public meetings in northern, central, and southern regions before spending money received from federal rural health grants.

Issues: ✓ Healthcare

Bill status in committee 1 of 4 stages cleared

Introduction

Jun 2026

Committee Review

Floor Vote

Governor

Introduced Jun 9, 2026 Last action Jun 11, 2026

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What changed between versions

Introduced Version → Senate Engrossed Version · 10 edits

MAJOR

This bill amends Arizona's health care statutes to establish new funding mechanisms, modify eligibility rules for state employee health insurance, and introduce specific reporting and oversight requirements. It also adjusts financial contributions from counties for long-term care and acute care services for the 2026-2027 fiscal year.

Scope change

The bill expands the scope of state oversight by creating a new Health Insurance Trust Fund Oversight Board and adding specific requirements for the administration of the Arizona Rural Health Transformation Fund. It also extends the applicability of certain overdose prevention program rules to contracts entered into or renewed on or after December 31, 2026.

FISCAL

Establishes a new Arizona Rural Health Transformation Fund to manage monies received from the Rural Health Transformation Program under Public Law 119-21, requiring public meetings before spending.

Updates county contribution amounts for the Arizona Long-Term Care System and County Acute Care contributions for fiscal year 2026-2027.

Modifies the allocation of disproportionate share hospital payments for fiscal year 2026-2027, including specific amounts for the Arizona State Hospital and private hospitals.

REQUIREMENT

Creates a new Health Insurance Trust Fund Oversight Board with specific members and duties to approve health insurance programs, premium rates, and strategic plans for state employee coverage.

Requires the Arizona Health Care Cost Containment System to submit a report on mental health medication costs and utilization by January 31, 2027.

Adds requirements for hospitals to notify the administration of presumptive eligibility determinations and establishes a penalty system with mandatory training for repeated violations.

ELIGIBILITY

Revises eligibility criteria for state employee health insurance to include provisions for dependents and clarifies rules regarding self-insurance and plan selection.

ADDED

Establishes a pilot program for traditional healing services at urban Indian health organizations for fiscal years 2026-2027 through 2028-2029, subject to federal waiver approval.

TIMELINE

Sets a repeal date of June 30, 2027, for sections regarding eligibility redeterminations, presumptive eligibility, and the dementia services program.

ENFORCEMENT

Reduces penalties for counties that exceed expenditure limitations if the excess is due to spending opioid settlement funds.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 11, 2026

Upper · Passed

upper

Jun 10, 2026

Upper · Passed

upper

1 primary · 0 co-sponsors