The bill SB1101 proposes to appropriate a total of $35 million from the state General Fund and $18.7 million from Medicaid Expenditure Authority for fiscal year 2025 to support the construction and operation of secure behavioral health residential facilities (SBHRFs) in Arizona. Specifically, it allocates $25 million for the construction of these facilities, which are required to provide secure on-site supportive treatment to individuals deemed seriously mentally ill and chronically resistant to treatment, as determined by a court order. The bill outlines the geographic distribution of the facilities, mandating three in the central area, one in the north, and one in the south, with a funding cap of $5 million per facility.

Additionally, the bill requires the Arizona Health Care Cost Containment System (AHCCCS) to report to legislative leaders if it does not issue a proposal to utilize the $25 million by the end of 2024, detailing the reasons for the delay and plans for future proposals. The new bill language also emphasizes that the appropriations are exempt from lapsing provisions, ensuring that the funds remain available until their intended purpose is fulfilled. This contrasts with current law, which does not specify these funding allocations or the reporting requirements for AHCCCS.