(1) (a) On or before July 1, 2024, each of the following shall establish in rule a formula for allocating state funds by contract to local health departments: (i) the department; and (ii) the Department of Environmental Quality. (b) This formula shall provide for allocation of funds based on need. (c) Determination of need shall be based on population unless the department making the rule establishes by valid and accepted data that other defined factors are relevant and reliable indicators of need. (d) The formula shall include a differential to compensate for additional costs of providing services in rural areas. (2) (a) Except as provided in Subsection (2)(b), the formulas apply to all state funds appropriated by the Legislature to any of the following for local health department use: (i) the department; or (ii) the Department of Environmental Quality. (b) The formulas do not apply to funds a local health department receives from: (i) sources other than the department or the Department of Environmental Quality; or (ii) the department or the Department of Environmental Quality: (A) to operate a specific program within the local health department's boundaries which program is available to all residents of the state; (B) to meet a need that exists only within the local health department's boundaries; and (C) to engage in research projects.
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