HB 2737
Initials AF Page 1 Appropriations
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)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note