A. The Arizona health innovation trust fund is established. The state treasurer shall administer the trust fund as trustee.

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B. The trust fund is a permanent endowment fund that consists of monies appropriated by the legislature, earnings from the fund and gifts or grants donated or given to the fund.

C. Monies in the trust fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

D. The state treasurer shall accept, separately account for and hold in trust any trust fund monies deposited pursuant to this section in the state treasury, which are considered to be trust monies as defined in section 35-310 and which may not be commingled with any other monies in the state treasury except for investment purposes. The state treasurer shall invest and divest, as provided by sections 35-313 and 35-314.03, any trust fund monies deposited in the state treasury, and monies earned from interest and investment income shall be credited to the trust fund.

E. The state treasurer shall annually allocate four percent of the monies in the trust fund to an entity that satisfies all of the following requirements:

1. Is a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes.

2. Provides entrepreneurial education, mentoring and support to persons in the health innovation and health care delivery sectors in this state.

3. Provides workforce development programs designed to support the talent requirements of employers in the health innovation and health care delivery sectors in this state.

4. Provides programs that support the development and commercialization of health innovation by businesses that are based in this state and that employ not more than one hundred employees.

5. Has entered into an endowment agreement with the state treasurer that includes investment procedures, maturity timelines and other requirements established by the state treasurer and entity reporting requirements, which must include how distributions from the trust fund are used and the social and economic impact of the use.

F. On or before December 31 of each year, the entity shall submit the report as prescribed by the treasurer to the governor, the president of the senate, the speaker of the house of representatives and the state treasurer and shall provide a copy of this report to the secretary of state.