The proposed bill seeks to amend current statutes by establishing a new Home and Community-Based Services (HCBS) program specifically for adults who are Seriously Mentally Ill (SMI) within the Arizona Health Care Cost Containment System (AHCCCS). Key updates include the introduction of definitions for terms related to the program, the requirement for AHCCCS to develop and seek federal approval for the program, and the formation of a stakeholder workgroup to guide program design. The bill narrows eligibility criteria to individuals requiring long-term care for SMI and specifies covered services such as personal care and habilitation, while ensuring that existing involuntary treatment standards remain unchanged.

Additionally, the bill modifies the frequency of implementation updates from quarterly to semiannual, reduces the initial enrollment cap from 500 to 250 members (with potential expansion to 1,000), and removes the requirement for AHCCCS to prioritize available slots during limited enrollment. It also updates reporting requirements to include member utilization of emergency services and mandates ongoing efforts to secure federal approval if initial implementation is denied. Overall, these changes aim to streamline the HCBS for SMI Program while focusing on individuals with significant care needs.