ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

HB 2737: appropriation; schools; premium subsidy; retention

Sponsor: Representative Shah, LD 5

Committee on Appropriations

Overview

Appropriates $10,000,000 from the state General Fund (GF) to the Arizona Department of Education (ADE) for an Insurance Premium Subsidy Retention Grant Program (Program).

History

ADE is a state department responsible for executive and administrative functions of education from kindergarten to 12^th grade. ADE is directed by the Superintendent of Public Instruction, a statewide elected constitutional officer (A.R.S. §§ 15-231; 15-251). According to the FY 2024 Baseline Book, ADE oversees 236 school districts, accommodation districts and Career Technological Education Districts and 435 charter schools.

Grants administered by state agencies use a competitive grant process. This process includes issuance of a request for grant applications with adequate public notice, evaluation by at least three peer or otherwise qualified individuals, and affirmation, modification or rejection of the evaluators' recommendations by the head of a state governmental unit (A.R.S. § 41-2702).

Provisions

1. Appropriates $10,000,000 from the GF in FY 2024 to ADE to administer the Program. (Sec. 1)

2. Directs ADE to award grants to school districts and charter holders for employee helath and dental insurance premium subsidies for eligible teachers and support staff members. (Sec. 1)

3. Deems teachers and support staff members to be eligible if they:

a) Are employed at the school during the 2023-2024 school year;

b) Receive annual compensation under $75,000; and

c) Demonstrate the partial subsidy will:

i. Defray the cost of health and dental insurance for otherwise uninsured dependents; and

ii. Be a significant factor in the school's ability to retain the teacher or support staff member. (Sec. 1)

4. Sets the amount of the distribution to a teacher or support staff member to be at least 50% of the total annual insurance premium for the teacher or support staff member and his or her dependents, provided it is no greater than $6,000 per year or 90% of the total annual insurance premium. (Sec. 1)

5. Requires a school district or charter holder that receives a grant award under the Program to submit a report to the Legislature containing specified information. (Sec. 1)

6. Contains a delayed repeal date of January 1, 2028. (Sec. 1)

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10. HB 2737

11. Initials AF Page 0 Appropriations

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