(Rpld. 7/1/27)

1. A. The Arizona nurse education investment pilot program is established in the department to increase the capacity of nursing education programs in this state by fostering collaboration among this state's education and health care communities and the state and federal governments. Subject to available monies, the program shall address this state's nursing shortage by increasing the number of all levels of nurses graduating from this state's nursing education programs by the end of fiscal year 2026-2027 from the number graduating in fiscal year 2021-2022. The department may use legislative appropriations, private donations, grants and federal monies to implement, support, promote and maintain the program or to supplant monies appropriated from the state general fund. The department shall use all other funding sources before using any state general fund monies appropriated for this purpose.
2. B. The Arizona nurse education investment pilot program fund is established consisting of legislative appropriations and monies provided by any federal agency, entity or program for nursing education and workforce expansion. The department shall administer the fund. Monies in the fund are continuously appropriated and exempt from the provisions of section 35-190 relating to lapsing of appropriations. Any monies remaining in the fund on June 30, 2027 revert to the state general fund.
3. C. The department shall allocate fund monies to the Arizona board of regents and community college districts based on the number of nursing students graduating in fiscal year 2021-2022 from eligible education programs offered or overseen by the Arizona board of regents and the community college districts. Eligible education programs include programs for nursing assistants, licensed practical nurses, registered nurses and advanced practice nurses.

4. D. Monies allocated from the Arizona nurse education investment pilot program fund shall be used by the Arizona board of regents and the community college districts:

   1. 1. To pay for salaries, benefits, training and related expenses and operational costs necessary to increase the number of qualified nursing education faculty members teaching in nursing degree and certificate programs that are operated or overseen by the Arizona board of regents or the community college districts. The monies may be spent only for additional nursing education faculty members based on the number of faculty members who provided this education on June 30, 2021.
   2. 2. To supplement and not supplant monies that are appropriated by the legislature for each of fiscal years 2022-2023 through 2025-2026 based on the number of nursing education faculty members who provided this education and who were funded in fiscal year 2021-2022.
   3. 3. For capital expenses that are directly related to additional faculty and students, including student support services.
5. E. The Arizona board of regents shall establish a process, which may include a grant program, to annually distribute fund monies to the universities under its jurisdiction for use only as prescribed in this section.

6. F. The director shall award grants to community college districts for use only as prescribed in this section based on the recommendations from a statewide organization that represents community colleges. The department shall establish an application form, process and procedure by which monies may be granted. The grants prescribed by this subsection are subject to the availability of monies and shall be distributed in a manner designed to increase the number of nurse graduates or students completing certificate programs by increasing available faculty and teaching resources in a manner that:

   1. 1. Provides for the efficient use of available monies and shared resources.
   2. 2. Distributes monies throughout geographic areas of this state and to underrepresented populations in the nursing workforce in this state.