ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

 

HB 2171: health care workforce council; fund

Sponsor: Representative Bliss, LD 1

Committee on Health & Human Services

Overview

Establishes the Arizona Health Care Workforce Investment Fund (HCWI Fund) and the Health Care Workforce Advisory Council (Council). Requires, beginning in FY 2028, 10% of taxes paid by an insurer on account of premiums received for accident, health insurance and Arizona Health Care Cost Containment System (AHCCCS) contracted coverage to be distributed to the HCWI Fund and separately specified in the premium tax report.

History

Annually on March 1, each authorized domestic insurer, each other insurer and each formally authorized insurer must file with the Director of the Department of Insurance and Financial Institutions (DIFI) a report in a form prescribed by the DIFI Director showing total direct premium income, including policy membership and other fees and all other considerations for insurance from all classes of business (A.R.S. § 20-224).

Laws 2016, Chapter 372, established the Office of Economic Opportunity to: 1) monitor the state's tax and regulatory competitiveness; 2) serve as the state's workforce planning coordinator and provide economic and demographic research and analysis; 3) provide administrative support and analytic support to the Arizona Finance Authority; 4) analyze state and local regulatory costs to businesses; and 5) provide analytical support to the Arizona Commerce Authority. The Director of the Office of Economic Opportunity (Director) is appointed by the Governor and is responsible for the direction, operation and control of the office (A.R.S. § 41-5302).

Provisions

Arizona Health Care Workforce Investment Fund

1.   Requires, beginning in FY 2028, 10% of taxes paid by an insurer on account of premiums received for accident, health insurance and AHCCCS contracted coverage to be separately specified in the premium tax report and distributed into the HCWI Fund. (Sec. 1)

2.   Requires the Director to administer the HCWI Fund. (Sec. 5)

3.   Establishes the HCWI Fund to consist of grants, donations and monies distributed from the 10% premium tax. (Sec. 5)

4.   Specifies that monies in the HCWI Fund are continuously appropriated and exempt from lapsing. (Sec. 5)

5.   Specifies that donations made by insurance companies that own an entity that is an AHCCCS contractor count towards that company's community reinvestment requirement. (Sec. 5)

6.   Allows HCWI Funds to be used for any of the following:

a)   expanding class sizes for Arizona colleges and universities;

b)   purchasing new equipment and laboratory space;

c) hiring new faculty members;

d)   post-graduate clinical training programs; and

e)   scholarships with four-year working requirements. (Sec. 5)

7.   Requires 10% of the HCWI Funds to be used for rural health care grants to help attract health care providers to rural areas and include funding for any of the following:

a)   facility investment;

b)   medical loan repayment;

c) signing bonuses to bring in health care providers; and

d)   purchasing medical equipment necessary to open a new office in locations that do not have health care providers. (Sec. 5)

8.   Instructs the Director to prescribe a simplified form and procedure to apply for and approve grants and establish requirements and criteria by which grants will be awarded. (Sec. 5)

9.   Allows the Director, if HCWI Funds are eligible for federal matching monies, to enter into agreements with other state agencies in order to be eligible and apply for the federal matching monies. (Sec. 5)

Health Care Workforce Advisory Council

10.  Establishes the Council within the Office of Economic Opportunity to address health care workforce shortages in Arizona and outlines Council membership. (Sec. 5)

11.  Requires, beginning July 1, 2027, and annually thereafter, the Council to meet and make recommendations to the Director on how to allocate the monies in the HCWI Fund.       (Sec. 5)

12.  Directs the Council to prepare and submit an annual report with the recommendations to the Governor, President of the Senate and Speaker of the House of Representatives and provide a copy to the Secretary of State. (Sec. 5)

13.  ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical and conforming changes. (Sec. 1-4)

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17.                    HB 2171

18.  Initials AG           Page 0 Health & Human Services

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