AZ SB1514

Amends Arizona's health care cost containment system (AHCCCS) to establish a new framework for disproportionate share hospital (DSH) payments to hospitals owned or leased by special health care districts organized under title 48, chapter 31.

Requires qualifying hospitals owned by special health care districts to submit certified public expense reports by May 1 each year documenting qualifying DSH expenditures to the administration.

Establishes a formula for distributing federal DSH funds between special health care district hospitals and the state general fund, with district hospitals receiving $25-55 million annually depending on fiscal year (FY 2016-2017 through FY 2019-2020 and beyond).

Requires the administration to determine available federal DSH allotments by first allocating funds to the Arizona state hospital and $16 million to other qualifying hospitals, with remaining funds available for special health care district hospitals.

Requires proportional distribution of any federal DSH funds below the $77.5 million threshold between special health care district hospitals and the general fund based on the established allocation percentages.