HB 2402
Initials PRB/LM Page 1 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
HB2402: small business incubator program
Sponsor: Representative Gress, LD 4
Committee on Commerce
Overview
Appropriates $500,000 from the Federal Temporary Assistance for Needy Families Block Grant
(Federal Assistance Grant) in FY 2024 to the Arizona Commerce Authority (ACA) for establishing
and administering the Small Business Incubator Program (Program).
History
The ACA was established in 2011 with the mission to provide private sector leadership in: 1)
growing and diversifying the economy of Arizona; 2) creating high-quality employment in Arizona
through expansion, attraction and retention of businesses; and 3) marketing Arizona for the
purpose of expansion, attraction and retention of businesses (A.R.S. § 41-1502).
The Arizona Department of Corrections (ADC) is established with the objective of encompassing
the various institutions, facilities and programs which are now or may become a part of the
correctional program of the state, and to provide the supervisory staff and administrative functions
at the state level of all matters relating to the institutionalization, rehabilitation and community
supervision functions of all adult offenders (A.R.S. § 41-1602).
Statute allows the Director to authorize an eligible inmate who is within 90 days of the inmate's
earliest release date to participate in a community reentry work program and requires the director
to adopt rules to implement the community reentry work program, including eligibility criteria for
the selection of inmates. To be eligible, at a minimum, the inmate must:
1) Not have been convicted at any time of a violation of statute relating to kidnapping, sexual
offense or arson, a violent crime or a dangerous crime against children;
2) Not currently be serving a sentence for a domestic violence offense;
3) Be classified by ADC as a low risk to the community;
4) Not have any felony detainers or US immigration and customs enforcement detainers;
5) Not have previously escaped or attempted to escape from a secure or nonsecure jail or prison
facility or environment;
6) Have made satisfactory progress on the inmate's individualized corrections plan as
determined by ADC;
7) Have maintained civil behavior while incarcerated as determined by ADC;
8) Be current on any restitution payments ordered by a court; and
9) Have a need and ability to benefit from a community reentry work program as determined by
ADC. (A.R.S. § 41-1604.18).
Provisions
1. Establishes the Program in the ACA to assist current and former inmates who are participating
in second chance centers to establish small businesses. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2402
Initials PRB/LM Page 2 Commerce
2. Defines second chance center as a program in which ADC and DES collaborate and bring
comprehensive services to inmates who are nearing release and who are most likely to
recidivate. (Sec. 1)
3. Appropriates $500,000 from the Federal Assistance Grant in FY 2024 to the ACA for
establishing and administering the Program. (Sec. 2)
4. Exempts the appropriation from lapsing. (Sec. 2)