Arizona rural health transformation fund

Plain English Breakdown

The effective date is listed only as 'general effective date' in the source text; no specific calendar date is provided.

Arizona Rural Health Transformation Fund

This bill creates a new state fund under AHCCCS to manage federal money from the Rural Health Transformation Program and sets rules for how that money can be spent.

What This Bill Does

• Creates the Arizona Rural Health Transformation Fund using money received through the federal Rural Health Transformation Program (RHTP).
• Requires AHCCCS to run and manage this new fund.
• Mandates three public meetings in each of the largest metropolitan areas in Northern, Central, and Southern Arizona before any spending happens.
• Asks for public input during these meetings on how the money should be used.
• Requires AHCCCS to send a spending plan to the Joint Legislative Budget Committee for approval after the meetings.

Who It Names or Affects

• AHCCCS, which must manage the fund and hold public meetings.
• The Executive Branch, which cannot spend the money until rules are followed.
• The Joint Legislative Budget Committee, which must approve the spending plan.
• Residents of rural Arizona who may receive improved health services.

Terms To Know

AHCCCS

Arizona Health Care Cost Containment System, the state agency that runs Medicaid and will manage this fund.

RHTP

Rural Health Transformation Program, a federal program providing money to states for rural health improvements.

Joint Legislative Budget Committee (JLBC)

A group of lawmakers that reviews and approves state spending plans.

Limits and Unknowns

• The bill does not say exactly how much money Arizona will receive from the federal program.
• The specific date when this law takes effect is listed as a general effective date, which depends on other actions.
• The text describes what must happen before spending but does not list every possible way the money can be used.

Official Summary Text

SB1316 - 572R - Senate Fact Sheet

Assigned to
HHS�������������������������������������������������������������������������������������������������������������������� FOR
COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
s.b. 1316

Arizona
rural health transformation fund

Purpose

Establishes the
Arizona Rural Health Transformation Fund (Fund) under the Arizona Health Care
Cost Containment System (AHCCCS) consisting of monies received through the
Rural Health Transformation Program (RHTP) and establishes procedures for
utilization of Fund monies.

Background

The RHTP is a
federal program that directs $10 billion per year for each of FYs 2026 through
2030 toward promoting rural health innovation, strategic partnerships,
infrastructure development and workforce investment. Half of the allocated
monies must be distributed to states upon approval of each state's proposed
RHTP plan by the U.S. Centers for Medicare and Medicaid Services.

To be eligible
for an allotment from the RHTP, a state must submit an application that
includes prescribed information, including a detailed plan to: 1) improve
access to hospitals, health care providers and health care items and services for
rural residents of the state; 2) improve health care outcomes of rural
residents; 3) prioritize the use of new and emerging technologies that
emphasize prevention and chronic disease management; 4) initiate and strengthen
local and regional strategic partnerships between rural health care providers;
5) enhance economic opportunity for, and supply of, health care clinicians
through enhanced recruitment and

training; and 6) prioritize data and technology driven solutions that help
rural hospitals and health care providers furnish high-quality health care
services as close to a patient's home as possible. The plan must outline
strategies to manage long-term financial solvency and operating models of rural
hospitals in the state and identify specific causes driving the accelerating
rate of stand-alone rural hospitals becoming at risk of closure, conversion or
service reduction (
P.L. 119-21,
119th Congress, 2025
).

There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.

Provisions

1.

Establishes the Fund consisting of monies received by the state through the
RHTP.

2.

Requires AHCCCS to administer the Fund.

3.

Requires AHCCCS, before the Executive Branch may spend any of the monies
in the Fund, to hold three public meetings in each of the largest metropolitan
areas in Northern, Central and Southern Arizona to receive input and feedback
regarding how the monies should be spent.

4.

Requires AHCCCS, after the three meetings have been held, to submit an
expenditure plan for the monies received through the RHTP to the Joint
Legislative Budget Committee for approval.

5.

Specifies that the Fund monies are continuously appropriated.

6.

Becomes effective on the general effective date.

Prepared by Senate Research

January 26, 2026

MM/SDR/hk

Current Bill Text

SB1316 - 572R - S Ver

Senate Engrossed

Arizona rural health
transformation fund

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1316

AN
ACT

Amending Title 36, chapter 29, article 1,
Arizona Revised Statutes, by adding section 36-2920.01; relating to the aRizona
health care cost containment system.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 36, chapter 29, article 1,
Arizona Revised Statutes, is amended by adding section 36-2920.01, to read:

START_STATUTE
36-2920.01.

Arizona rural health transformation fund; public meetings;
expenditure plan; joint legislative budget committee approval

A. The Arizona rural health
transformation fund is established consisting of monies received by this state
through the rural health transformation program prescribed in Section 71401 of
Public Law 119-21.� The Arizona health care cost containment system shall
administer the fund.� Monies in the fund are continuously appropriated.

B. Before the executive branch may
spend any of the monies in the Arizona rural health transformation fund, the
Arizona health care cost containment system shall hold three public meetings in
each of the largest metropolitan areas in northern, central and southern
Arizona to receive input and feedback regarding how the monies should be
spent.� After the three meetings have been held, the Arizona health care cost
containment system shall submit an expenditure plan for the monies received
through the Rural health transformation program prescribed in Section 71401 of
Public Law 119-21 to the joint legislative budget committee for approval.

END_STATUTE