2005 Arizona Revised Statutes - Revised Statutes §36-797  Health crisis fund; definition

A. The health crisis fund is established consisting of monies allocated to the fund from the medically needy account of the tobacco tax and health care fund established pursuant to section 36-774.

B. On July 1 each fiscal year, sufficient monies from the medically needy account to establish a fund balance of one million dollars shall be deposited in the health crisis fund. Expenditures from the health crisis fund shall not exceed one million dollars annually. The fund balance shall not exceed one million dollars but may fall below this amount during a fiscal year as a result of approved expenditures. All interest earned on the monies in the fund shall be credited to the medically needy account. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. If the governor determines and declares by executive order that a health crisis or a significant potential for a health crisis exists in this state, the governor may authorize specific liabilities and expenses to be incurred and paid as claims against this state from monies in the health crisis fund. Before the governor authorizes any liabilities or expenditures, the governor shall specifically justify why the health crisis was not considered a contingency or an emergency pursuant to section 35-192. The governor shall submit a copy of the executive order to the director of the joint legislative budget committee when monies in the health crisis fund are set aside for a health crisis or a significant potential for a health crisis that exists in this state.

D. Liabilities and expenses that are authorized under subsection C of this section may be incurred for the following:

1. Reimbursement for reasonable and related health treatment expenses that are incurred by health care facilities or providers rendering care for persons who have no health coverage and who are affected by the health crisis.

2. Reimbursement for research costs to determine:

(a) The cause of the health crisis.

(b) The impact of the health crisis on the health status of the surrounding neighborhood, community, region or other area.

(c) The steps that could be taken to mitigate or resolve the crisis.

3. Reimbursement for expenses that are incurred to prevent the onset of a health crisis or to respond to an existing health crisis.

E. The director of the department of health services shall review the liabilities incurred and the expenditures made under this section and shall report to the director of the joint legislative budget committee within ninety days after the termination of the crisis. The director shall report by August 1 of each year to the legislature on the expenditures from the health crisis fund during the preceding fiscal year.

F. Liabilities that are incurred under this section are subject to the following limitations:

1. Liability shall not be incurred against the monies that are authorized for each crisis without the approval of the governor or the director of the department of health services.

2. An obligation of monies may be made under this section only if one or more of the following conditions exist:

(a) No appropriation or other authorization is available to address the crisis.

(b) Any available appropriation or other authorization is insufficient to address the crisis.

(c) Federal monies that are available for a crisis are conditioned on an initial expenditure of state or other public monies or require state or other public monies to be used for matching purposes.

G. The director of the department of health services shall seek reimbursement for health crisis fund expenditures if appropriate sources of reimbursement exist. Monies that are recovered pursuant to this subsection shall be deposited in the medically needy account of the tobacco tax and health care fund.

H. The director of the department of health services shall adopt rules for administering monies that are authorized for liabilities under this section, including reimbursement procedures and limitations, subject to the governor's approval.

I. For the purposes of this section, "crisis" or "health crisis" means a situation in which the health status of an area in this state is, was or could be adversely affected but in which the nature of the crisis does not meet the standard of an emergency, contingency or menace under section 35-192 or a state of emergency as defined in section 26-301. Health crisis includes local or regional chemical contaminations, basic health services delivery disruptions, caused by unforeseen circumstances, in medically underserved areas as prescribed by section 36-2352, localized outbreaks of a disease or a potential outbreak of a disease that has a reasonable possibility of occurring and that poses a significant threat to a community or region in this state.