ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
COMMERCE COMMITTEE
DATE: February 13, 2023
SUBJECT: Strike everything amendment to S.B. 1136, relating to rural business development
advisory council
Purpose
Adds, to the duties of the Rural Business Development Advisory Council (Advisory
Council), the requirement to provide research on limitations and challenges to securing economic
development projects, including challenges related to water certainty, broadband and
infrastructure.
Background
The Arizona Commerce Authority (ACA) is charged with providing private sector
leadership in growing and diversifying the economy of Arizona, creating high quality employment
through expansion, attraction and retention of businesses and markets Arizona. The ACA is
governed by a public-private board that employs a chief executive officer who is responsible for
managing, executing, administering and supervising the activities of the ACA (A.R.S. §§ 41-1502
and 41-1503). The duties of the ACA include establishing and supervising the operations of
full-time or part-time offices in other states and foreign countries for the purpose of expanding
direct investment and export trade opportunities for businesses and industries in Arizona, assessing
and collecting fees for processing applications and administering incentives and establishing a
program by which entrepreneurs become aware of permits, licenses or authorizations needed to
establish, expand or operate in Arizona (A.R.S. § 41-1504).
The Advisory Council is charged with advising the ACA Board of Directors regarding rural
business development strategies, including creating jobs, diversifying economies and attracting
new investments. The duties of the Advisory Council include: 1) recommending to the ACA Board
of Directors policy development and funding allocations to complement regional and local
economic development strategies that focus on and assist rural communities; 2) developing
selection criteria and an application format for rural communities or areas to use in applying for
matching monies; 3) assisting local rural economic development professionals, main street project
managers and others involved in economic development; 4) making recommendations regarding
state responsibilities under any necessary contracts with consultants, including the National Main
Street Center of the National Trust for Historic Preservation, and coordination of the activities of
other state agency personnel assisting with rural economic development programs; and
5) coordinating the expenditure of available federal monies to support rural business and economic
development programs. The Advisory Council must also develop priorities for economic strength
projects based on factors such as the cost of the project, the number of jobs that the project will
create, retain or increase, and the amount of expenditures required for local infrastructure relating
to the project (A.R.S. §§ 28-7281 and 41-1505).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
PAULINE MAYUNDO
LEGISLATIVE RESEARCH INTERN
JASON THEODOROU
LEGISLATIVE RESEARCH ANALYST
COMMERCE COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
S.B. 1136
Page 2
Provisions
1. Adds, to the duties of the Advisory Council, the requirement to provide research on limitations
and challenges to securing economic development projects, including challenges related to
water certainty, broadband and infrastructure.
2. Becomes effective on the general effective date.