appropriations; health innovation trust fund

Plain English Breakdown

The bill defines 'chronic condition' broadly and lists examples, but the specific list in the definition is illustrative rather than exhaustive.

HB2727: Funding for the Arizona Health Innovation Trust Fund

This bill provides $3 million from the state budget to a special fund that supports health projects and creates a test program for people with long-term illnesses.

What This Bill Does

• Gives $1.5 million from the General Fund to the Arizona Health Innovation Trust Fund in fiscal year 2027.
• Gives another $1.5 million to run a pilot program focused on health innovations for people with chronic conditions.
• Requires the group running the pilot program to send an annual report by December 31 to state leaders and officials.
• States that money set aside for the pilot program does not expire at the end of the budget year if it is not spent immediately.
• Sets a goal for the Trust Fund to grow until it holds at least $200 million in total savings.

Who It Names or Affects

• The Arizona Health Innovation Trust Fund
• The State Treasurer, who manages and allocates the money
• A charitable organization that receives funds for health innovation projects
• People living with chronic conditions

Terms To Know

Appropriation

An official act by the legislature to set aside money from the state budget for a specific purpose.

Trust Fund

A permanent savings account managed by the State Treasurer that holds government funds, gifts, and investment earnings.

Chronic Condition

A long-lasting health issue lasting at least one year that needs ongoing medical care, such as diabetes or cancer.

Limits and Unknowns

• The bill does not name the specific charitable organization that will receive the money for the pilot program.
• The text states a goal of $200 million but does not explain how much time it expects to take to reach this amount.

Official Summary Text

HB2727 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

HB
2727
: appropriations; health innovation trust fund

Sponsor:
Representative Bliss, LD 1

Committee
on Health & Human Services

Overview

Appropriates $3,000,000
from the state General Fund (GF) in FY 2027 to the Arizona Health Innovation
Trust Fund (Trust Fund).

History

Laws 2022,
Chapter 314
established the Trust Fund to be
administered by the State Treasurer, who acts as trustee. The Trust Fund is a
permanent endowment fund that consists of legislative appropriations, fund
earnings, gifts and grants donated or given to the Trust Fund. The State
Treasurer must separately hold in trust any deposited Trust Fund monies in the
state Treasury. Trust Fund monies cannot be commingled with other monies,
except for investment purposes; monies earned from interest and investment
income are credited to the Trust Fund. Monies in the Trust Fund are
continuously appropriated and are exempt from lapsing (
A.R.S. �� 35-310
,
35-313
,
35-314.03
).

The State Treasurer must annually allocate 4% of Trust Fund
monies to an entity that is a 501(c)(3) charitable organization that supports
health innovation and healthcare workforce development in Arizona, including
entrepreneurial education, mentoring, workforce programs and commercialization
support for small businesses in the sector. The recipient entity must have an
endowment agreement with the State Treasurer and submit an annual report
detailing fund usage and its social and economic impact to state officials (
A.R.S. � 41-
177).

Provisions

1.

Appropriates
$1,500,000 from the State GF in FY 2027 to the Trust Fund. (Sec. 1)

2.

Appropriates
an additional $1,500,000 from the State GF in FY 2027 to the Trust Fund for the
State Treasurer, to allocate to an entity that currently has an endowment
agreement for the Trust Fund monies, to conduct a pilot program focused on
health innovations for persons living with chronic conditions. (Sec. 1)

3.

Requires the
entity to submit a report to the Governor, President of the Senate, and Speaker
of the House of Representatives and State Treasurer and a copy to the Secretary
of State relating to the pilot program annually by December 31. (Sec. 1)

4.

Exempts the $1,500,000
appropriation for the pilot program from lapsing. (Sec. 1)

5.

Declares
that the Legislature intends that monies in the Trust Fund steadily grow to
ultimately maintain a permanent endowment balance of at least $200,000,000.
(Sec. 1)

6.

Defines
chronic
condition.
(Sec. 1)

7.

8.

9.

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10.

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2727

11.

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12.

13.

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FOOTER ---------

Current Bill Text

HB2727 - 572R - I Ver

REFERENCE TITLE:
appropriations; health innovation trust fund

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2727

Introduced by

Representative
Bliss

AN
ACT

Appropriating monies to the ARizona
health innovation trust fund.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.
Appropriations;
Arizona health innovation trust fund; state treasurer; pilot program; report;
exemption; intent; definition

A. The sum of $1,500,000 is
appropriated from the state general fund in fiscal year 2026-2027 to the
Arizona health innovation trust fund established by section 41-177,
Arizona Revised Statutes.

B. The sum of $1,500,000 is
appropriated from the state general fund in fiscal year 2026-2027 to the
Arizona health innovation trust fund established by section 41-177,
Arizona Revised Statutes, for the state treasurer to allocate to an entity that
meets the requirements of section 41-177, subsection E, Arizona Revised
Statutes, to conduct a pilot program focused on health innovations for persons
living with chronic conditions.� The entity shall submit a report pursuant to
section 41-177, subsection F, Arizona Revised Statutes, relating to the
pilot program.

C. The appropriation made
in subsection B of this section is exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations.

D. The legislature intends
that the Arizona health innovation trust fund that consists of monies
appropriated by the legislature, earnings from the fund and gifts or grants
donated or given to the fund as prescribed by section 41-177, subsection
B, Arizona Revised Statutes, steadily grow to ultimately maintain a permanent
endowment balance of at least $200,000,000.

E. For the purposes of this
section, "chronic condition":

1. Means a long-lasting
health condition, typically lasting at least one year, that requires ongoing
medical attention and often limits daily activities.

2. Includes autoimmune
diseases, cardiovascular diseases, cancers, diabetes and neurodegenerative
diseases.