Arizona 2024 2024 Regular Session

Arizona House Bill HB2210 Comm Sub / Analysis

Filed 06/15/2024

                    Assigned to FICO 	AS PASSED BY ADD COW 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Sixth Legislature, Second Regular Session 
 
AMENDED 
FACT SHEET FOR H.B. 2210 
 
occupational safety advisory committee; continuation 
(NOW: state agencies; continuations; duties) 
Purpose 
Modifies the powers and duties on the Arizona Commerce Authority (ACA). Continues 
prescribed state agencies.  
Background 
In 2011, the Legislature established the ACA with the mission to provide private sector 
leadership in growing and diversifying the economy of Arizona, creating high quality employment 
in Arizona through expansion, attraction and retention of businesses and marketing Arizona for 
the purpose of expansion, attraction and retention of businesses. The ACA has a board of directors 
consisting of 19 voting members, including the Governor serving as Chairperson, the Chief 
Executive Officer (CEO) of the ACA and 17 private sector business leaders who are CEOs of 
private, for-profit enterprises. Of the 17 private sector voting members, nine are appointed by the 
Governor, four are appointed by the President of the Senate (Senate President) and four are 
appointed by the Speaker of the House of Representatives (House Speaker). The board also has 10 
ex-officio members without the power to vote and 9 technical advisors that serve the board to 
enhance collaboration among state agencies to meet infrastructure needs and facilitate growth 
opportunities throughout the state. The CEO is appointed by the board and has the statutorily 
prescribed responsibility for managing, administering and supervising the activities of the ACA. 
The duties of the ACA include: 1) administering tax credits and incentives for businesses; 2) 
administering various grants to qualified businesses to enhance economic development, including 
through the Arizona Competes Fund; 3) managing the State Broadband Office; 4) establishing a 
program by which entrepreneurs become aware of permits, licenses or other authorizations needed 
to establish, expand or operate in the state; and 5) establishing and supervising the operations of 
full-time or part-time offices in other states and foreign countries expanding direct investment and 
export trade opportunities (A.R.S. Title 41, Chapter 10). 
Statute outlines a process with the intent: 1) to establish an orderly schedule for the 
termination of existing state agencies, departments, boards, commissions, institutions and 
programs and to make provisions for legislative review to enable the Legislature to have the benefit 
of recommendations for the continuation of those state agencies, departments, boards, 
commissions, institutions and programs which are deemed to be essential for the necessary and 
efficient operation of government; 2) that the sunset review of an existing state agency, department, 
program, board or advisory council or committee means the sunset review of the powers and duties 
exercised by such state agency, department, program, board or advisory council or committee; and 
3) that any amendment of the enabling authority for an agency, department, program, board or  FACT SHEET – Amended 
S.B. 2210 
Page 2 
 
 
advisory council or committee subject to sunset review be in accordance with the legislative review 
process (A.R.S. § 41- 2951). 
The ACA, Arizona Department of Administration (ADOA), Governor's Office on Tribal 
Relations (GOTR), Occupational Safety and Health Advisory Committee (ADOSH Advisory 
Committee), State Personnel Board, Arizona Historical Society and Prescott Historical Society are 
set to terminate on July 1, 2024, unless continued by the Legislature (A.R.S. Title 41, Chapter 27, 
Article 2). 
There is no anticipated fiscal impact to the state General Fund associated with this 
legislation. 
Provisions 
Agency Continuations  
1. Continues, retroactive to July 1, 2024, the ACA until July 1, 2029.  
2. Repeals the ACA on January 1, 2030.  
3. Continues, retroactive to July 1, 2024, the ADOA until July 1, 2030.  
4. Repeals the ADOA on January 1, 2031.  
5. Continues, retroactive to July 1, 2024, the GOTR, ADOSH Advisory Committee, State 
Personnel Board, Arizona Historical Society and Prescott Historical Society until July 1, 2032.  
6. Repeals the GOTR, ADOSH Advisory Committee, State Personnel Board, Arizona Historical 
Society and Prescott Historical Society on January 1, 2033.  
7. Contains purpose statements. 
ACA 
8. Adds an attorney with experience litigating constitutional cases involving the Gift Clause of 
the Arizona Constitution as a member of the technical advisors to the ACA Board of Directors. 
9. Stipulates that the attorney is to be appointed jointly by the President of the Senate and Speaker 
of the House of Representatives.  
10. Requires the public portion of meetings of the ACA Board of Directors to be recorded.  
11. Requires the recordings to be posted on the ACA's website within three business days and 
retained on its website for at least one year after the date of posting.  
12. Prohibits the ACA from having more than 100 full-time employees excluding any full-time 
employees that are funded with monies other than state monies.   
13. Requires the ACA to submit a copy of its annual report to the Governor, the President of the 
Senate and the Speaker of the House of Representatives.   FACT SHEET – Amended 
S.B. 2210 
Page 3 
 
 
14. Clarifies that the ACA annual report must include:  
a) the cumulative progress made towards the ACA's goal for direct job creation, capital 
investment and higher wages; and  
b) the estimated number of indirect and induced jobs created as a result of the work and 
programs of the ACA. 
15. Requires the ACA to adopt policies that prohibit using state monies to provide business 
executives lodging, alcoholic beverages, personal transportation or tickets to entertainment 
events for the purpose of attracting businesses to Arizona.  
16. Requires, by September 30 of each year, every city, town and county in Arizona to submit to 
the ACA the jurisdiction's statistics for the proceeding fiscal year to include:  
a) the average time from submission of an initial building permit application to a certificate 
of occupancy;  
b) the average time from submission of a zoning application to zoning approval;  
c) the average time from submission of a final plat to the recordation of the final plat; and 
d) any other statistics as determined by the ACA or the Municipality Time Frames Advisory 
Committee relating to municipality support for economic development projects.  
17. Requires, by December 31 of each year, the ACA to compile the collected statistical data and 
submit a report to the Governor, the President of the Senate, the Speaker of the House of 
Representatives and the Secretary of State.  
Municipality Time Frames Advisory Committee 
18. Establishes the Municipality Time Frames Advisory Committee consisting of the following 
members jointly appointed by the President of the Senate and the Speaker of the House of 
Representatives:  
a) one members who is an economist;  
b) one member who represents the homebuilding industry in Arizona;  
c) one member who represents a tax research organization in Arizona;  
d) one members who represents a statewide association of businesses in Arizona; and 
e) one members who represents a national association in Arizona that comprises of private, 
independently-owned and operated businesses in Arizona.  
19. Stipulates that members of the Municipality Time Frames Advisory Committee serve five-year 
terms.  
20. Requires the Municipality Time Frames Advisory Committee to submit recommendations to 
the ACA relating to municipal and county support for economic development projects to be 
included in the ACA's collected statistical data from cities, towns and counties.  
Arizona Competes Fund 
21. Requires the ACA CEO to report to the President of the Senate and the Speaker of the House 
of Representatives on a quarterly basis regarding any amendments to any written agreements 
executed under the Arizona Competes Fund.   FACT SHEET – Amended 
S.B. 2210 
Page 4 
 
 
22. Requires the ACA CEO to track the status and completion of any agreement provisions and 
retain supporting documentation for inspection on request.  
Miscellaneous 
23. Defines direct job as employment that is in direct connection with the operations or function 
of a business, facility or target industry, as determined and applied in standard economic 
modeling practices.  
24. Defines indirect job as employment that is created in the local supply chain that serves a 
business, facility or target industry, as determined and applied in standard economic modeling 
practices.  
25. Defines induced jobs as employment that is created as a result of local spending of the 
employees of the business, facility or target industry or the employees of suppliers that serve 
that business, facility or target industry, as determined and applied in standard economic 
modeling practices.  
26. Makes technical and conforming changes.  
27. Becomes effective on the general effective date, with retroactive provisions as noted.  
Amendments adopted by Additional Committee of the Whole 
1. Continues, retroactive to July 1, 2024, the ACA until July 1, 2029.  
2. Repeals the ACA on January 1, 2030.  
3. Continues, retroactive to July 1, 2024, the ADOA until July 1, 2030.  
4. Repeals the ADOA on January 1, 2031.  
5. Continues, retroactive to July 1, 2024, the GOTR, State Personnel Board, Arizona Historical 
Society and Prescott Historical Society until July 1, 2032.  
6. Repeals the GOTR, State Personnel Board, Arizona Historical Society and Prescott Historical 
Society on January 1, 2033.  
7. Adds purpose statements relating to the continuations of the ACA, ADOA, GOTR, State 
Personnel Board, Arizona Historical Society and Prescott Historical Society.  
8. Adds an attorney with experience litigating constitutional cases involving the Gift Clause of 
the Arizona Constitution as a member of the technical advisors to the ACA Board of Directors. 
9. Stipulates that the attorney is to be appointed jointly by the President of the Senate and Speaker 
of the House of Representatives.  
10. Requires the public portion of meetings of the ACA Board of Directors to be recorded.   FACT SHEET – Amended 
S.B. 2210 
Page 5 
 
 
11. Requires the recordings to be posted on the ACA's website within three business days and 
retained on its website for at least one year after the date of posting.  
12. Prohibits the ACA from having more than 100 full-time employees excluding any full-time 
employees that are funded with monies other than state monies.   
13. Requires the ACA to submit a copy of its annual report to the Governor, the President of the 
Senate and the Speaker of the House of Representatives.  
14. Clarifies that the ACA annual report must include:  
a) the cumulative progress made towards the ACA's goal for direct job creation, capital 
investment and higher wages; and  
b) the estimated number of indirect and induced jobs created as a result of the work and 
programs of the ACA. 
15. Requires the ACA to adopt policies that prohibit using state monies to provide business 
executives lodging, alcoholic beverages, personal transportation or tickets to entertainment 
events for the purpose of attracting businesses to Arizona.  
16. Requires, by September 30 of each year, every city, town and county in Arizona to submit to 
the ACA the jurisdiction's statistics for the proceeding fiscal year to include:  
a) the average time from submission of an initial building permit application to a certificate 
of occupancy;  
b) the average time from submission of a zoning application to zoning approval;  
c) the average time from submission of a final plat to the recordation of the final plat; and 
d) any other statistics as determined by the ACA or the Municipality Time Frames Advisory 
Committee relating to municipality support for economic development projects.  
17. Requires, by December 31 of each year, the ACA to compile the collected statistical data and 
submit a report to the Governor, the President of the Senate, the Speaker of the House of 
Representatives and the Secretary of State.  
18. Establishes the Municipality Time Frames Advisory Committee consisting of the following 
members jointly appointed by the President of the Senate and the Speaker of the House of 
Representatives:  
a) one members who is an  economist;  
b) one member who represents the homebuilding industry in Arizona;  
c) one member who represents a tax research organization in Arizona;  
d) one members who represents a statewide association of businesses in Arizona; and 
e) one members who represents a national association in Arizona that comprises of private, 
independently-owned and operated businesses in Arizona.  
19. Stipulates that members of the Municipality Time Frames Advisory Committee serve five-year 
terms.  
20. Requires the Municipality Time Frames Advisory Committee to submit recommendations to 
the ACA relating to municipal and county support for economic development projects to be 
included in the ACA's collected statistical data from cities, towns and counties.   FACT SHEET – Amended 
S.B. 2210 
Page 6 
 
 
21. Requires the ACA CEO to report to the President of the Senate and the Speaker of the House 
of Representatives on a quarterly basis regarding any amendments to any written agreements 
executed under the Arizona Competes Fund.  
22. Requires the ACA CEO to track the status and completion of any agreement provisions and 
retain supporting documentation for inspection on request.  
23. Defines direct job as employment that is in direct connection with the operations or function 
of a business, facility or target industry, as determined and applied in standard economic 
modeling practices.  
24. Defines indirect job as employment that is created in the local supply chain that serves a 
business, facility or target industry, as determined and applied in standard economic modeling 
practices.  
25. Defines induced jobs as employment that is created as a result of local spending of the 
employees of the business, facility or target industry or the employees of suppliers that serve 
that business, facility or target industry, as determined and applied in standard economic 
modeling practices.  
26. Makes technical and conforming changes.  
House Action  	Senate Action 
COM  2/6/24  DP  8-1-0-1  FICO  3/18/24  DP  5-1-1-0 
3
rd
 Read  2/29/24   47-12-0-0-1 
Prepared by Senate Research 
June 14, 2024 
JT/cs