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| 54 | 55 | | An Act |
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| 58 | 59 | | amending sections 41-1501, 41-1502 and 41-1504, Arizona Revised Statutes; amending title 41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41-1527; amending section 41-1545.02, Arizona Revised Statutes; repealing sections 41-3024.08, 41-3024.09, 41-3024.10, 41-3024.14, 41-3024.17, 41-3024.23 and 41-3024.31, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding sections 41-3029.13, 41-3030.12, 41-3032.05, 41-3032.08, 41-3032.09, 41-3032.10 and 41-3032.17; relating to state government. |
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| 64 | 65 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 68 | 69 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 41-1501, Arizona Revised Statutes, is amended to read: START_STATUTE41-1501. Definitions In this chapter, unless the context otherwise requires: 1. "Authority" means the Arizona commerce authority. 2. "Board" means the board of directors of the authority. 3. "Chief executive officer" means the chief executive officer of the authority. 4. "DIRECT JOB" MEANS 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. 5. "INDIRECT JOB" MEANS 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. 6. "INDUCED JOB" MEANS 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 SERVES THAT BUSINESS, FACILITY OR TARGET INDUSTRY, AS DETERMINED AND APPLIED IN STANDARD ECONOMIC MODELING PRACTICES. END_STATUTE Sec. 2. Section 41-1502, Arizona Revised Statutes, is amended to read: START_STATUTE41-1502. Arizona commerce authority; board of directors; conduct of office; audit A. The Arizona commerce authority is established. The mission of the authority is to provide private sector leadership in growing and diversifying the economy of this state, creating high quality employment in this state through expansion, attraction and retention of businesses and marketing this state for the purpose of expansion, attraction and retention of businesses. B. The authority is governed by a board of directors consisting of: 1. The governor, who serves as chairperson. 2. The chief executive officer. 3. Seventeen private sector business leaders who are chief executive officers of private, for-profit enterprises. None of these members may be an elected official of any government entity. These members must be appointed from geographically diverse areas of this state and not all from the same county. These members shall serve staggered three-year terms of office beginning and ending on the third Monday in January. These members shall be appointed as follows: (a) Nine members who are appointed by the governor. (b) Four members who are appointed by the president of the senate. (c) Four members who are appointed by the speaker of the house of representatives. 4. The following as ex officio members without the power to vote: (a) The president of the senate. (b) The speaker of the house of representatives. (c) The president of the Arizona board of regents. (d) The president of each state university under the jurisdiction of the Arizona board of regents. (e) One president of a community college who is appointed by a statewide organization of community college presidents. (f) The chairperson of the governor's council on small business, or its successor. (g) The chairperson of the workforce Arizona council established by executive order pursuant to section 41-5401. (h) One member of the rural business development advisory council established by section 41-1505 who is appointed by the governor. (i) The president of a statewide organization of incorporated cities and towns who is appointed by the governor. (j) The president of a statewide organization of county boards of supervisors who is appointed by the governor. C. For members who are appointed by the governor pursuant to subsection B of this section, before appointment by the governor, a prospective member of the board of directors shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. D. The following shall serve as technical advisors to the board to enhance collaboration among state agencies to meet infrastructure needs and facilitate growth opportunities throughout this state: 1. The director of environmental quality. 2. The state land commissioner. 3. The director of the department of revenue. 4. The director of the office of tourism. 5. The director of the department of transportation. 6. The director of water resources. 7. The director of the department of insurance and financial institutions. 8. The director of the Arizona-Mexico commission in the governor's office. 9. The director of the office of economic opportunity. 10. AN ATTORNEY who is APPOINTED JOINTLY BY THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES and who has EXPERIENCE LITIGATING CONSTITUTIONAL CASES INVOLVING ARTICLE IX, SECTION 7 OF THE ARIZONA CONSTITUTION. E. The governor shall appoint a cochairperson of the board of directors from among the voting members. The board may establish an executive committee consisting of the chairperson, the cochairperson, the chief executive officer, and additional voting members of the board elected by the board. The chairperson may appoint subcommittees as necessary. F. The board may request assistance from representatives of other state agencies to maximize economic development opportunities by leveraging their access to strategic assets and planning processes. G. Board members serve without compensation but are eligible for reimbursement of expenses pursuant to section 41-1504, subsection E, paragraph 1. H. A majority of the voting members, which must include the chairperson and the chief executive officer, constitute a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the members present at an official meeting is sufficient for any action to be taken. I. The board of directors shall keep and maintain a complete and accurate record of all of its proceedings. Public access to the board's records is subject to section 41-1504, subsection L m. The public portion of board meetings shall be recorded. These recordings shall be posted on the AUTHORITY'S website within three business days after the meeting and shall remain on the website pursuant to section 38-431.01, subsection k. J. The board of directors, executive committee, subcommittees and advisory councils are subject to title 38, chapter 3, article 3.1, relating to public meetings, except as follows: 1. In addition to section 38-431.03, the board of directors, executive committee and subcommittees may meet in executive session for discussion about potential business development opportunities and strategies, that, if made public, could potentially harm the applicant's, the potential applicant's or this state's competitive position. 2. Social and travel events related to the expansion, attraction and retention of businesses are not public meetings if no legal action involving a final vote or decision is taken. 3. Activities and events held in public for the purpose of announcing the expansion, attraction and retention of projects are not public meetings. K. The board of directors and the officers and employees of the authority are subject to title 38, chapter 3, article 8, relating to conflicts of interest. L. The board of directors shall adopt written policies, procedures and guidelines for standards of conduct, including a gift policy, for members of the board and for officers and employees of the authority. M. The compensation of all officers and employees is considered a public record pursuant to title 39, chapter 1. N. The authority shall operate on the state fiscal year. The board of directors shall cause an annual audit to be conducted on or before October 31 of each of the authority's public funds established by this chapter by an independent certified public accountant. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to chapter 7, article 10.1 of this title. If the auditor general takes no further action within thirty days after the audit is filed, the audit is considered to be sufficient. O. All state agencies shall cooperate with the authority and make available data pertaining to the functions of the authority as requested by the authority. P. The authority may not have more than one hundred full-time employees, excluding any full-time employees that are funded with monies other than state monies. END_STATUTE Sec. 3. Section 41-1504, Arizona Revised Statutes, is amended to read: START_STATUTE41-1504. Powers and duties; e-verify requirement A. The board of directors, on behalf of the authority, may: 1. Adopt and use a corporate seal. 2. Sue and be sued. 3. Enter into contracts as necessary to carry out the purposes and requirements of this chapter, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 and interagency service agreements as provided by section 35-148. 4. Lease real property and improvements to real property for the purposes of the authority. Leases by the authority are exempt from chapter 4, article 7 of this title, relating to management of state properties. 5. Employ or retain legal counsel and other consultants as necessary to carry out the purposes of the authority. 6. Develop and use written policies, procedures and guidelines for the terms and conditions of employing officers and employees of the authority and may include background checks of appropriate personnel. B. The board of directors, on behalf of the authority, shall: 1. Develop comprehensive long-range strategic economic plans for this state and submit the plans to the governor. 2. Annually update a strategic economic plan for submission to the governor. 3. Accept gifts, grants and loans and enter into contracts and other transactions with any federal or state agency, municipality, private organization or other source. C. The authority shall: 1. Assess and collect fees for processing applications and administering incentives. The board shall adopt the manner of computing the amount of each fee to be assessed. Within thirty days after proposing fees for adoption, the chief executive officer shall submit a schedule of the fees for review by the joint legislative budget committee. It is the intent of the legislature that a fee shall not exceed one percent of the amount of the incentive. 2. Determine and collect registry fees for the administration of the allocation of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Such monies collected by the authority shall be deposited, pursuant to sections 35-146 and 35-147, in an application fees fund. Monies in the fund shall be used, subject to annual appropriation by the legislature, by the authority to administer the allocations provided in this paragraph and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. 3. Determine and collect security deposits for the allocation, for the extension of allocations and for the difference between allocations and principal amounts of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Security deposits forfeited to the authority shall be deposited in the state general fund. 4. At the direction of the board, establish and supervise 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 this state if, based on objective research, the authority determines that the effort would be beneficial to the economy of this state. 5. Establish a program by which entrepreneurs become aware of permits, licenses or other authorizations needed to establish, expand or operate in this state. 6. Post on its website on an annual basis a report containing that contains at least the following information, and submit a copy to the governor, the PRESIDENT of the senate and the speaker of the house of representatives: (a) The cumulative progress made toward its goals for direct job creation, capital investment and higher average wages and the estimated number of indirect jobs and induced jobs created as a result of the work and the programs of the authority. (b) To the extent not prohibited by law, information on each incentive application approved by the authority in the fiscal year, including the amount of the incentive approved or awarded and the applicant's activity that is projected or has been achieved, whichever is applicable, to qualify for the incentive. (c) Rural economic development outreach and impact data. (d) Small business outreach and impact data. 7. Develop and implement written policies and procedures relating to the administration of grants from the Arizona competes fund established by section 41-1545.01, including the following elements: (a) Procedures for documenting grantee selection and due diligence. (b) Procedures for verification of information submitted by grantees. (c) Procedures for evaluating requests to amend grant terms and for documenting decisions relating to those requests. 8. Notwithstanding any other law, on request of the office of economic opportunity, disclose to the office of economic opportunity applicant information for incentives administered, in whole or in part, by the authority. Any confidentiality requirements provided by law applicable to the information disclosed pursuant to this paragraph apply to the office of economic opportunity. 9. On or before december 31 of each year, compile the data collected pursuant to subsection f of this section and submit a report to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state. D. The authority, through the chief executive officer, may: 1. Contract and incur obligations reasonably necessary or desirable within the general scope of the authority's activities and operations to enable the authority to adequately perform its duties. 2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the authority. 3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter. 4. Assess business fees for promotional services provided to businesses that export products and services from this state. The fees shall not exceed the actual costs of the services provided. 5. Establish and maintain one or more accounts in banks or other depositories, for public or private monies of the authority, from which operational activities, including payroll, vendor and grant payments, may be conducted. Individual funds that are established by law under the jurisdiction of the authority may be maintained in separate accounts in banks or other depositories, but shall not be commingled with any other monies or funds of the authority. E. The chief executive officer shall: 1. Hire employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. The board of directors shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses and health and accident insurance. The officers and employees of the authority are exempt from any laws regulating state employment, including: (a) Chapter 4, articles 5 and 6 of this title, relating to state service. (b) Title 38, chapter 4, article 1 and chapter 5, article 2, relating to state personnel compensation, leave and retirement. (c) Title 38, chapter 4, article 2, relating to reimbursement of state employee expenses. (d) Title 38, chapter 4, article 4, relating to health and accident insurance. 2. Maintain three full-time employees to serve as advocates for small and rural businesses on economic development and regulatory matters before cities, towns, counties or state agencies. Two of the full-time employees shall be dedicated to small business growth, support and regulation, one of whom shall serve as a small business ombudsman. One of the full-time employees shall be dedicated to rural economic development. 3. On a quarterly basis, provide public record data in a manner prescribed by the department of administration related to the authority's revenues and expenditures for inclusion in the comprehensive database of receipts and expenditures of state monies pursuant to section 41-725. f. On or before september 30 of each year, each city, town and county in this state shall submit to the authority the city's, town's or COUNTY'S STATISTICS for the preceding fiscal year that include all of the following: 1. The Average time from the submission of an initial building permit application to a certificate of occupancy. 2. The Average time from the submission of a zoning application to zoning approval. 3. The Average time from the submission of a final plat to the recordation of the final plat. 4. Any Other statistics as determined by the authority or the municipality time frames advisory committee established by section 41-1527 relating to municipal and county support for economic development projects. F. g. In addition to any other requirement, in order to qualify for any grant, loan, reimbursement, tax incentive or other economic development incentive pursuant to this chapter, an applicant that is an employer must register with and participate in the e-verify program in compliance with section 23-214. The authority shall require verification of compliance with this subsection as part of any application process. G. h. Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management. H. i. The authority is exempt from title 18, chapter 1, articles 1 and 2, relating to statewide information technology. The authority shall adopt policies, procedures and guidelines regarding information technology. I. j. The authority is exempt from state general accounting and finance practices and rules adopted pursuant to chapter 4, article 3 of this title, but the board shall adopt written accounting practices, systems and procedures for the economic and efficient operation of the authority. The authority shall adopt policies pursuant to this SUBSECTION THAT prohibit using state monies as defined in section 35-321 to provide business executives lodging, alcoholic beverages, personal transportation or tickets to entertainment events for the purposes of attracting businesses to this state. J. k. The authority is exempt from section 41-712, relating to the installation and maintenance of telecommunication systems. K. l. The authority may lease or purchase motor vehicles for use by employees to conduct business activities. The authority is exempt from section 28-472, relating to the state motor vehicle fleet, and title 38, chapter 3, article 10, relating to vehicle usage and markings. L. m. Any tangible or intangible record submitted to or compiled by the board or the authority in connection with its work, including the award of monies, is subject to title 39, chapter 1, unless an applicant shows, or the board or authority determines, that specific information meets either of the following: 1. If made public, the information would divulge the applicant's or potential applicant's trade secrets, as defined in section 44-401. 2. If made public, the information could potentially harm the applicant's, the potential applicant's or this state's competitive position relating to potential business development opportunities and strategies. M. n. The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise. END_STATUTE Sec. 4. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1527, to read: START_STATUTE41-1527. Municipality time frames advisory committee; membership; duties A. The municipality time frames advisory committee is established consisting of the following members jointly appointed by the president of the senate and the speaker of the house of representatives: 1. One member who is An economist. 2. One member who represents the homebuilding industry in this state. 3. One member who represents a tax research organization in this state. 4. One member who represents A statewide association of businesses in this state. 5. One member who represents a national association in this state that is comprised of private, independently owned and operated businesses in this state. B. Members of the advisory committee shall serve five-year terms. the initial members shall assign themselves by lot to one term of three years, two terms of four years and two terms of five years in office. C. The advisory committee shall submit recommendations to the authority relating to municipal and county support for economic development projects to be added to the data reported pursuant to section 41-1504, subsection F. END_STATUTE Sec. 5. Section 41-1545.02, Arizona Revised Statutes, is amended to read: START_STATUTE41-1545.02. Grants from the Arizona competes fund A. The chief executive officer may negotiate the award of monies from the Arizona competes fund. The monies shall be paid, by grant, for the purposes of: 1. Attracting, expanding or retaining Arizona basic enterprises that meet the requirements prescribed by subsection B of this section, that achieve the performance and qualification targets developed under subsection C of this section and that enter into an agreement with the chief executive officer as provided by subsection C of this section. In awarding monies pursuant to this paragraph, the chief executive officer shall give preference to job training and infrastructure activities that create private sector jobs. 2. Supporting and advancing programs and projects for microenterprises, rural businesses, small businesses and business development that enhance economic development. B. To be eligible to receive a deal closing grant under subsection A, paragraph 1 of this section, an applicant must: 1. Be in good standing under the laws of the state in which the applicant was formed or organized, as evidenced by a certificate issued by the secretary of state or other state official having custody of the records pertaining to entities or other organizations formed under the laws of that state. 2. Owe no delinquent taxes to a taxing jurisdiction in this state. 3. Qualify as an Arizona basic industry. 4. Pay compensation that exceeds, on average, one hundred percent of the median wage by county as determined annually by the authority. 5. Include health insurance for employees for which the applicant pays at least sixty-five percent of the premium or membership cost. 6. Demonstrate by analysis by an independent third party that estimated income, property and transaction privilege tax and government fee revenues in this state will exceed state incentives. C. Before awarding a grant from the fund under this section, the chief executive officer must enter into a written agreement with the applicant specifying that: 1. A reasonable percentage of the total amount of the grant may be withheld until the recipient meets specified performance targets. 2. If the chief executive officer finds that the grant recipient has not met each of the performance targets specified in the agreement as of a date stated in the agreement: (a) The recipient must repay the grant and any related interest to this state at an agreed rate and on agreed terms. The repayment may be prorated to reflect partial attainment of performance targets. (b) The chief executive officer shall not disburse any remaining grant money to the recipient under the agreement. (c) The chief executive officer may assess specified penalties against the recipient for noncompliance. 3. If any part of the grant is used to build a capital improvement, this state may: (a) Retain a lien or other security interest in the improvement in proportion to the percentage of the grant amount used to pay for the improvement. (b) Require the recipient, if the improvement is sold, to: (i) Repay to this state the grant monies used to pay for the improvement, with interest at a rate and according to terms stated in the agreement. (ii) Share with this state a proportionate amount of any profit realized from the sale. D. The chief executive officer shall report to the president of the senate and speaker of the house of representatives on a quarterly basis regarding any amendments to any written agreement executed pursuant to subsection C of this section. The chief executive officer shall track the status and completion of any agreement provisions and amendment provisions and retain supporting documentation for inspection on request. D. e. The chief executive officer must determine: 1. The performance targets and dates required to be included in each grant agreement. 2. If the grant agreement includes withholding a percentage of the grant until the recipient meets the performance targets, the percentage of the grant money to be withheld. E. f. Before awarding a grant from the fund under this section, the authority must prepare a written statement, signed by the chief executive officer, that, specifically and in detail, assesses the direct economic impact of the grant. The statement must: 1. Include a finding that the enterprise is clearly in the best interests of this state. 2. Set forth the evidence and reasons supporting this finding, including: (a) The estimated annual tax revenue accruing to this state and its political subdivisions as a direct or indirect result of the enterprise. (b) The public benefit of the enterprise from the employment base, including the estimated number and the median wage of jobs to be created in this state by the potential recipient each year. (c) The extent to which the economic development from the enterprise will raise the standard of living of affected persons, increases free enterprise growth and increases the quality of life in this state. (d) The ratio of economic benefit from wages paid and capital investment made by the enterprise to the amount of the grant. (e) The contribution from the enterprise to the growth of existing businesses and creation of new businesses and business clusters. (f) Whether the enterprise will provide its employees with benefits such as retirement, child care, educational reimbursements and training. (g) The percentage of the products or services the enterprise will export outside of this state over the first five years of operation. (h) Any other information the chief executive officer considers to be necessary for inclusion in the statement. F. g. Beginning from and after June 30, 2017, on the last day of each fiscal year, thirty percent of the monies appropriated to the fund in the fiscal year, minus the amount of grants awarded in the fiscal year for the purposes prescribed in subsection A, paragraph 2 of this section, not to exceed the unencumbered monies in the fund on the last day of the fiscal year, are reserved for grants for the purposes prescribed in subsection A, paragraph 2 of this section. Of the amount reserved for grants under this subsection, thirty percent or an amount not to exceed one million dollars $1,000,000 shall be used for grants to support and advance microenterprise development in this state. G. h. In addition to the monies reserved pursuant to subsection F g of this section, at least twenty-five percent of the monies appropriated to the fund each year shall be reserved to support and advance activities and projects for businesses located in a county with a population of less than two million persons or on tribal lands, or both. Monies not awarded pursuant to this subsection within nine months after the beginning of the fiscal year may be awarded to activities and projects for businesses that are located in any county. In awarding monies reserved pursuant to this subsection, the chief executive officer shall give priority to a county that is located along the Arizona-Mexico border or a county in which a military facility is located or to projects located on tribal lands. END_STATUTE Sec. 6. Repeal Sections 41-3024.08, 41-3024.09, 41-3024.10, 41-3024.14, 41-3024.17, 41-3024.23 and 41-3024.31, Arizona Revised Statutes, are repealed. Sec. 7. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding sections 41-3029.13, 41-3030.12, 41-3032.05, 41-3032.08, 41-3032.09, 41-3032.10 and 41-3032.17, to read: START_STATUTE41-3029.13. Arizona commerce authority; termination July 1, 2029 A. The Arizona commerce authority terminates on July 1, 2029. B. Title 41, chapter 10 and this section are repealed on January 1, 2030.END_STATUTE START_STATUTE41-3030.12. Department of administration; termination July 1, 2030 A. The department of administration terminates on July 1, 2030. B. Title 41, chapter 4, articles 1, 2, 3, 4, 5 and 7, title 18, chapter 1 and this section are repealed on January 1, 2031. END_STATUTE START_STATUTE41-3032.05. Governor's office on tribal relations; termination July 1, 2032 A. The governor's office on tribal relations terminates on July 1, 2032. B. Title 41, chapter 15 and this section are repealed on January 1, 2033. END_STATUTE START_STATUTE41-3032.08. Arizona historical society; termination July 1, 2032 A. The Arizona historical society terminates on July 1, 2032. B. Title 41, chapter 4.1, article 1 and this section are repealed on January 1, 2033. END_STATUTE START_STATUTE41-3032.09. Prescott historical society of Arizona; termination July 1, 2032 A. The Prescott historical society of Arizona terminates on July 1, 2032. B. Title 41, chapter 4.1, article 2 and this section are repealed on January 1, 2033.END_STATUTE START_STATUTE41-3032.10. State personnel board; termination July 1, 2032 A. The state personnel board terminates on July 1, 2032. B. Title 41, chapter 4, article 6 and this section are repealed on January 1, 2033. END_STATUTE START_STATUTE41-3032.17. Occupational safety and health advisory committee; termination July 1, 2032 A. The occupational safety and health advisory committee terminates on July 1, 2032. B. Section 23-409 and this section are repealed on January 1, 2033. END_STATUTE Sec. 8. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the Arizona commerce authority to facilitate the beneficial economic growth and development of this state and to promote prosperity through the development and protection of the legitimate interests of Arizona business, industry and commerce within and outside this state. Sec. 9. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the department of administration in order to provide services to state government in the following areas: 1. Automation. 2. Finance. 3. Personnel administration. 4. Public buildings maintenance. 5. Surplus property. 6. Risk management. 7. School facilities. Sec. 10. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature establishes the governor's office on tribal relations in order to assist and support tribal nations and communities in this state and to enhance government-to-government relations between the twenty-two tribal nations within the boundaries of this state. Sec. 11. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the Arizona historical society to purchase, receive, hold, lease and sell property for the benefit of this state and the use of the society. Sec. 12. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the Prescott historical society of Arizona in order to purchase, receive, hold, lease and sell property for the benefit of this state and the use of the society. Sec. 13. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the state personnel board to hear and review appeals relating to personnel actions taken against state employees and dismissals from state service, suspensions for more than forty hours and demotions resulting from disciplinary actions. Sec. 14. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the occupational safety and health advisory committee to assist the industrial commission in drafting standards and rules. Sec. 15. Retroactivity Sections 6 and 7 of this act apply retroactively to from and after July 1, 2024. |
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| 69 | 70 | | |
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| 70 | 71 | | Be it enacted by the Legislature of the State of Arizona: |
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| 71 | 72 | | |
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| 72 | 73 | | Section 1. Section 41-1501, Arizona Revised Statutes, is amended to read: |
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| 73 | 74 | | |
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| 74 | 75 | | START_STATUTE41-1501. Definitions |
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| 75 | 76 | | |
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| 76 | 77 | | In this chapter, unless the context otherwise requires: |
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| 77 | 78 | | |
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| 78 | 79 | | 1. "Authority" means the Arizona commerce authority. |
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| 79 | 80 | | |
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| 80 | 81 | | 2. "Board" means the board of directors of the authority. |
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| 81 | 82 | | |
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| 82 | 83 | | 3. "Chief executive officer" means the chief executive officer of the authority. |
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| 83 | 84 | | |
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| 84 | 85 | | 4. "DIRECT JOB" MEANS 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. |
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| 85 | 86 | | |
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| 86 | 87 | | 5. "INDIRECT JOB" MEANS 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. |
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| 87 | 88 | | |
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| 88 | 89 | | 6. "INDUCED JOB" MEANS 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 SERVES THAT BUSINESS, FACILITY OR TARGET INDUSTRY, AS DETERMINED AND APPLIED IN STANDARD ECONOMIC MODELING PRACTICES. END_STATUTE |
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| 89 | 90 | | |
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| 90 | 91 | | Sec. 2. Section 41-1502, Arizona Revised Statutes, is amended to read: |
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| 91 | 92 | | |
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| 92 | 93 | | START_STATUTE41-1502. Arizona commerce authority; board of directors; conduct of office; audit |
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| 93 | 94 | | |
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| 94 | 95 | | A. The Arizona commerce authority is established. The mission of the authority is to provide private sector leadership in growing and diversifying the economy of this state, creating high quality employment in this state through expansion, attraction and retention of businesses and marketing this state for the purpose of expansion, attraction and retention of businesses. |
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| 95 | 96 | | |
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| 96 | 97 | | B. The authority is governed by a board of directors consisting of: |
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| 97 | 98 | | |
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| 98 | 99 | | 1. The governor, who serves as chairperson. |
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| 99 | 100 | | |
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| 100 | 101 | | 2. The chief executive officer. |
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| 101 | 102 | | |
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| 102 | 103 | | 3. Seventeen private sector business leaders who are chief executive officers of private, for-profit enterprises. None of these members may be an elected official of any government entity. These members must be appointed from geographically diverse areas of this state and not all from the same county. These members shall serve staggered three-year terms of office beginning and ending on the third Monday in January. These members shall be appointed as follows: |
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| 103 | 104 | | |
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| 104 | 105 | | (a) Nine members who are appointed by the governor. |
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| 105 | 106 | | |
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| 106 | 107 | | (b) Four members who are appointed by the president of the senate. |
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| 107 | 108 | | |
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| 108 | 109 | | (c) Four members who are appointed by the speaker of the house of representatives. |
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| 109 | 110 | | |
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| 110 | 111 | | 4. The following as ex officio members without the power to vote: |
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| 111 | 112 | | |
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| 112 | 113 | | (a) The president of the senate. |
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| 113 | 114 | | |
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| 114 | 115 | | (b) The speaker of the house of representatives. |
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| 115 | 116 | | |
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| 116 | 117 | | (c) The president of the Arizona board of regents. |
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| 117 | 118 | | |
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| 118 | 119 | | (d) The president of each state university under the jurisdiction of the Arizona board of regents. |
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| 119 | 120 | | |
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| 120 | 121 | | (e) One president of a community college who is appointed by a statewide organization of community college presidents. |
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| 121 | 122 | | |
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| 122 | 123 | | (f) The chairperson of the governor's council on small business, or its successor. |
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| 123 | 124 | | |
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| 124 | 125 | | (g) The chairperson of the workforce Arizona council established by executive order pursuant to section 41-5401. |
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| 125 | 126 | | |
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| 126 | 127 | | (h) One member of the rural business development advisory council established by section 41-1505 who is appointed by the governor. |
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| 127 | 128 | | |
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| 128 | 129 | | (i) The president of a statewide organization of incorporated cities and towns who is appointed by the governor. |
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| 129 | 130 | | |
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| 130 | 131 | | (j) The president of a statewide organization of county boards of supervisors who is appointed by the governor. |
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| 131 | 132 | | |
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| 132 | 133 | | C. For members who are appointed by the governor pursuant to subsection B of this section, before appointment by the governor, a prospective member of the board of directors shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. |
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| 133 | 134 | | |
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| 134 | 135 | | D. The following shall serve as technical advisors to the board to enhance collaboration among state agencies to meet infrastructure needs and facilitate growth opportunities throughout this state: |
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| 135 | 136 | | |
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| 136 | 137 | | 1. The director of environmental quality. |
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| 137 | 138 | | |
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| 138 | 139 | | 2. The state land commissioner. |
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| 139 | 140 | | |
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| 140 | 141 | | 3. The director of the department of revenue. |
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| 141 | 142 | | |
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| 142 | 143 | | 4. The director of the office of tourism. |
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| 143 | 144 | | |
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| 144 | 145 | | 5. The director of the department of transportation. |
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| 145 | 146 | | |
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| 146 | 147 | | 6. The director of water resources. |
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| 147 | 148 | | |
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| 148 | 149 | | 7. The director of the department of insurance and financial institutions. |
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| 149 | 150 | | |
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| 150 | 151 | | 8. The director of the Arizona-Mexico commission in the governor's office. |
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| 151 | 152 | | |
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| 152 | 153 | | 9. The director of the office of economic opportunity. |
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| 153 | 154 | | |
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| 154 | 155 | | 10. AN ATTORNEY who is APPOINTED JOINTLY BY THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES and who has EXPERIENCE LITIGATING CONSTITUTIONAL CASES INVOLVING ARTICLE IX, SECTION 7 OF THE ARIZONA CONSTITUTION. |
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| 155 | 156 | | |
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| 156 | 157 | | E. The governor shall appoint a cochairperson of the board of directors from among the voting members. The board may establish an executive committee consisting of the chairperson, the cochairperson, the chief executive officer, and additional voting members of the board elected by the board. The chairperson may appoint subcommittees as necessary. |
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| 157 | 158 | | |
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| 158 | 159 | | F. The board may request assistance from representatives of other state agencies to maximize economic development opportunities by leveraging their access to strategic assets and planning processes. |
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| 159 | 160 | | |
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| 160 | 161 | | G. Board members serve without compensation but are eligible for reimbursement of expenses pursuant to section 41-1504, subsection E, paragraph 1. |
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| 161 | 162 | | |
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| 162 | 163 | | H. A majority of the voting members, which must include the chairperson and the chief executive officer, constitute a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the members present at an official meeting is sufficient for any action to be taken. |
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| 163 | 164 | | |
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| 164 | 165 | | I. The board of directors shall keep and maintain a complete and accurate record of all of its proceedings. Public access to the board's records is subject to section 41-1504, subsection L m. The public portion of board meetings shall be recorded. These recordings shall be posted on the AUTHORITY'S website within three business days after the meeting and shall remain on the website pursuant to section 38-431.01, subsection k. |
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| 165 | 166 | | |
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| 166 | 167 | | J. The board of directors, executive committee, subcommittees and advisory councils are subject to title 38, chapter 3, article 3.1, relating to public meetings, except as follows: |
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| 167 | 168 | | |
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| 168 | 169 | | 1. In addition to section 38-431.03, the board of directors, executive committee and subcommittees may meet in executive session for discussion about potential business development opportunities and strategies, that, if made public, could potentially harm the applicant's, the potential applicant's or this state's competitive position. |
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| 169 | 170 | | |
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| 170 | 171 | | 2. Social and travel events related to the expansion, attraction and retention of businesses are not public meetings if no legal action involving a final vote or decision is taken. |
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| 171 | 172 | | |
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| 172 | 173 | | 3. Activities and events held in public for the purpose of announcing the expansion, attraction and retention of projects are not public meetings. |
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| 173 | 174 | | |
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| 174 | 175 | | K. The board of directors and the officers and employees of the authority are subject to title 38, chapter 3, article 8, relating to conflicts of interest. |
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| 175 | 176 | | |
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| 176 | 177 | | L. The board of directors shall adopt written policies, procedures and guidelines for standards of conduct, including a gift policy, for members of the board and for officers and employees of the authority. |
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| 177 | 178 | | |
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| 178 | 179 | | M. The compensation of all officers and employees is considered a public record pursuant to title 39, chapter 1. |
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| 179 | 180 | | |
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| 180 | 181 | | N. The authority shall operate on the state fiscal year. The board of directors shall cause an annual audit to be conducted on or before October 31 of each of the authority's public funds established by this chapter by an independent certified public accountant. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to chapter 7, article 10.1 of this title. If the auditor general takes no further action within thirty days after the audit is filed, the audit is considered to be sufficient. |
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| 181 | 182 | | |
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| 182 | 183 | | O. All state agencies shall cooperate with the authority and make available data pertaining to the functions of the authority as requested by the authority. |
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| 183 | 184 | | |
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| 184 | 185 | | P. The authority may not have more than one hundred full-time employees, excluding any full-time employees that are funded with monies other than state monies. END_STATUTE |
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| 185 | 186 | | |
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| 186 | 187 | | Sec. 3. Section 41-1504, Arizona Revised Statutes, is amended to read: |
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| 187 | 188 | | |
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| 188 | 189 | | START_STATUTE41-1504. Powers and duties; e-verify requirement |
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| 189 | 190 | | |
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| 190 | 191 | | A. The board of directors, on behalf of the authority, may: |
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| 191 | 192 | | |
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| 192 | 193 | | 1. Adopt and use a corporate seal. |
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| 193 | 194 | | |
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| 194 | 195 | | 2. Sue and be sued. |
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| 195 | 196 | | |
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| 196 | 197 | | 3. Enter into contracts as necessary to carry out the purposes and requirements of this chapter, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 and interagency service agreements as provided by section 35-148. |
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| 197 | 198 | | |
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| 198 | 199 | | 4. Lease real property and improvements to real property for the purposes of the authority. Leases by the authority are exempt from chapter 4, article 7 of this title, relating to management of state properties. |
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| 199 | 200 | | |
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| 200 | 201 | | 5. Employ or retain legal counsel and other consultants as necessary to carry out the purposes of the authority. |
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| 201 | 202 | | |
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| 202 | 203 | | 6. Develop and use written policies, procedures and guidelines for the terms and conditions of employing officers and employees of the authority and may include background checks of appropriate personnel. |
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| 203 | 204 | | |
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| 204 | 205 | | B. The board of directors, on behalf of the authority, shall: |
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| 205 | 206 | | |
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| 206 | 207 | | 1. Develop comprehensive long-range strategic economic plans for this state and submit the plans to the governor. |
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| 207 | 208 | | |
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| 208 | 209 | | 2. Annually update a strategic economic plan for submission to the governor. |
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| 209 | 210 | | |
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| 210 | 211 | | 3. Accept gifts, grants and loans and enter into contracts and other transactions with any federal or state agency, municipality, private organization or other source. |
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| 211 | 212 | | |
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| 212 | 213 | | C. The authority shall: |
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| 213 | 214 | | |
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| 214 | 215 | | 1. Assess and collect fees for processing applications and administering incentives. The board shall adopt the manner of computing the amount of each fee to be assessed. Within thirty days after proposing fees for adoption, the chief executive officer shall submit a schedule of the fees for review by the joint legislative budget committee. It is the intent of the legislature that a fee shall not exceed one percent of the amount of the incentive. |
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| 215 | 216 | | |
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| 216 | 217 | | 2. Determine and collect registry fees for the administration of the allocation of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Such monies collected by the authority shall be deposited, pursuant to sections 35-146 and 35-147, in an application fees fund. Monies in the fund shall be used, subject to annual appropriation by the legislature, by the authority to administer the allocations provided in this paragraph and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. |
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| 217 | 218 | | |
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| 218 | 219 | | 3. Determine and collect security deposits for the allocation, for the extension of allocations and for the difference between allocations and principal amounts of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Security deposits forfeited to the authority shall be deposited in the state general fund. |
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| 219 | 220 | | |
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| 220 | 221 | | 4. At the direction of the board, establish and supervise 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 this state if, based on objective research, the authority determines that the effort would be beneficial to the economy of this state. |
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| 221 | 222 | | |
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| 222 | 223 | | 5. Establish a program by which entrepreneurs become aware of permits, licenses or other authorizations needed to establish, expand or operate in this state. |
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| 223 | 224 | | |
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| 224 | 225 | | 6. Post on its website on an annual basis a report containing that contains at least the following information, and submit a copy to the governor, the PRESIDENT of the senate and the speaker of the house of representatives: |
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| 225 | 226 | | |
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| 226 | 227 | | (a) The cumulative progress made toward its goals for direct job creation, capital investment and higher average wages and the estimated number of indirect jobs and induced jobs created as a result of the work and the programs of the authority. |
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| 227 | 228 | | |
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| 228 | 229 | | (b) To the extent not prohibited by law, information on each incentive application approved by the authority in the fiscal year, including the amount of the incentive approved or awarded and the applicant's activity that is projected or has been achieved, whichever is applicable, to qualify for the incentive. |
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| 229 | 230 | | |
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| 230 | 231 | | (c) Rural economic development outreach and impact data. |
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| 231 | 232 | | |
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| 232 | 233 | | (d) Small business outreach and impact data. |
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| 233 | 234 | | |
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| 234 | 235 | | 7. Develop and implement written policies and procedures relating to the administration of grants from the Arizona competes fund established by section 41-1545.01, including the following elements: |
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| 235 | 236 | | |
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| 236 | 237 | | (a) Procedures for documenting grantee selection and due diligence. |
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| 237 | 238 | | |
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| 238 | 239 | | (b) Procedures for verification of information submitted by grantees. |
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| 239 | 240 | | |
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| 240 | 241 | | (c) Procedures for evaluating requests to amend grant terms and for documenting decisions relating to those requests. |
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| 241 | 242 | | |
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| 242 | 243 | | 8. Notwithstanding any other law, on request of the office of economic opportunity, disclose to the office of economic opportunity applicant information for incentives administered, in whole or in part, by the authority. Any confidentiality requirements provided by law applicable to the information disclosed pursuant to this paragraph apply to the office of economic opportunity. |
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| 243 | 244 | | |
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| 244 | 245 | | 9. On or before december 31 of each year, compile the data collected pursuant to subsection f of this section and submit a report to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state. |
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| 245 | 246 | | |
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| 246 | 247 | | D. The authority, through the chief executive officer, may: |
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| 247 | 248 | | |
|---|
| 248 | 249 | | 1. Contract and incur obligations reasonably necessary or desirable within the general scope of the authority's activities and operations to enable the authority to adequately perform its duties. |
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| 249 | 250 | | |
|---|
| 250 | 251 | | 2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the authority. |
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| 251 | 252 | | |
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| 252 | 253 | | 3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter. |
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| 253 | 254 | | |
|---|
| 254 | 255 | | 4. Assess business fees for promotional services provided to businesses that export products and services from this state. The fees shall not exceed the actual costs of the services provided. |
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| 255 | 256 | | |
|---|
| 256 | 257 | | 5. Establish and maintain one or more accounts in banks or other depositories, for public or private monies of the authority, from which operational activities, including payroll, vendor and grant payments, may be conducted. Individual funds that are established by law under the jurisdiction of the authority may be maintained in separate accounts in banks or other depositories, but shall not be commingled with any other monies or funds of the authority. |
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| 257 | 258 | | |
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| 258 | 259 | | E. The chief executive officer shall: |
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| 259 | 260 | | |
|---|
| 260 | 261 | | 1. Hire employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. The board of directors shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses and health and accident insurance. The officers and employees of the authority are exempt from any laws regulating state employment, including: |
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| 261 | 262 | | |
|---|
| 262 | 263 | | (a) Chapter 4, articles 5 and 6 of this title, relating to state service. |
|---|
| 263 | 264 | | |
|---|
| 264 | 265 | | (b) Title 38, chapter 4, article 1 and chapter 5, article 2, relating to state personnel compensation, leave and retirement. |
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| 265 | 266 | | |
|---|
| 266 | 267 | | (c) Title 38, chapter 4, article 2, relating to reimbursement of state employee expenses. |
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| 267 | 268 | | |
|---|
| 268 | 269 | | (d) Title 38, chapter 4, article 4, relating to health and accident insurance. |
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| 269 | 270 | | |
|---|
| 270 | 271 | | 2. Maintain three full-time employees to serve as advocates for small and rural businesses on economic development and regulatory matters before cities, towns, counties or state agencies. Two of the full-time employees shall be dedicated to small business growth, support and regulation, one of whom shall serve as a small business ombudsman. One of the full-time employees shall be dedicated to rural economic development. |
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| 271 | 272 | | |
|---|
| 272 | 273 | | 3. On a quarterly basis, provide public record data in a manner prescribed by the department of administration related to the authority's revenues and expenditures for inclusion in the comprehensive database of receipts and expenditures of state monies pursuant to section 41-725. |
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| 273 | 274 | | |
|---|
| 274 | 275 | | f. On or before september 30 of each year, each city, town and county in this state shall submit to the authority the city's, town's or COUNTY'S STATISTICS for the preceding fiscal year that include all of the following: |
|---|
| 275 | 276 | | |
|---|
| 276 | 277 | | 1. The Average time from the submission of an initial building permit application to a certificate of occupancy. |
|---|
| 277 | 278 | | |
|---|
| 278 | 279 | | 2. The Average time from the submission of a zoning application to zoning approval. |
|---|
| 279 | 280 | | |
|---|
| 280 | 281 | | 3. The Average time from the submission of a final plat to the recordation of the final plat. |
|---|
| 281 | 282 | | |
|---|
| 282 | 283 | | 4. Any Other statistics as determined by the authority or the municipality time frames advisory committee established by section 41-1527 relating to municipal and county support for economic development projects. |
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| 283 | 284 | | |
|---|
| 284 | 285 | | F. g. In addition to any other requirement, in order to qualify for any grant, loan, reimbursement, tax incentive or other economic development incentive pursuant to this chapter, an applicant that is an employer must register with and participate in the e-verify program in compliance with section 23-214. The authority shall require verification of compliance with this subsection as part of any application process. |
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| 285 | 286 | | |
|---|
| 286 | 287 | | G. h. Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management. |
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| 287 | 288 | | |
|---|
| 288 | 289 | | H. i. The authority is exempt from title 18, chapter 1, articles 1 and 2, relating to statewide information technology. The authority shall adopt policies, procedures and guidelines regarding information technology. |
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| 289 | 290 | | |
|---|
| 290 | 291 | | I. j. The authority is exempt from state general accounting and finance practices and rules adopted pursuant to chapter 4, article 3 of this title, but the board shall adopt written accounting practices, systems and procedures for the economic and efficient operation of the authority. The authority shall adopt policies pursuant to this SUBSECTION THAT prohibit using state monies as defined in section 35-321 to provide business executives lodging, alcoholic beverages, personal transportation or tickets to entertainment events for the purposes of attracting businesses to this state. |
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| 291 | 292 | | |
|---|
| 292 | 293 | | J. k. The authority is exempt from section 41-712, relating to the installation and maintenance of telecommunication systems. |
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| 293 | 294 | | |
|---|
| 294 | 295 | | K. l. The authority may lease or purchase motor vehicles for use by employees to conduct business activities. The authority is exempt from section 28-472, relating to the state motor vehicle fleet, and title 38, chapter 3, article 10, relating to vehicle usage and markings. |
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| 295 | 296 | | |
|---|
| 296 | 297 | | L. m. Any tangible or intangible record submitted to or compiled by the board or the authority in connection with its work, including the award of monies, is subject to title 39, chapter 1, unless an applicant shows, or the board or authority determines, that specific information meets either of the following: |
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| 297 | 298 | | |
|---|
| 298 | 299 | | 1. If made public, the information would divulge the applicant's or potential applicant's trade secrets, as defined in section 44-401. |
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| 299 | 300 | | |
|---|
| 300 | 301 | | 2. If made public, the information could potentially harm the applicant's, the potential applicant's or this state's competitive position relating to potential business development opportunities and strategies. |
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| 301 | 302 | | |
|---|
| 302 | 303 | | M. n. The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise. END_STATUTE |
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| 303 | 304 | | |
|---|
| 304 | 305 | | Sec. 4. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1527, to read: |
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| 305 | 306 | | |
|---|
| 306 | 307 | | START_STATUTE41-1527. Municipality time frames advisory committee; membership; duties |
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| 307 | 308 | | |
|---|
| 308 | 309 | | A. The municipality time frames advisory committee is established consisting of the following members jointly appointed by the president of the senate and the speaker of the house of representatives: |
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| 309 | 310 | | |
|---|
| 310 | 311 | | 1. One member who is An economist. |
|---|
| 311 | 312 | | |
|---|
| 312 | 313 | | 2. One member who represents the homebuilding industry in this state. |
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| 313 | 314 | | |
|---|
| 314 | 315 | | 3. One member who represents a tax research organization in this state. |
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| 315 | 316 | | |
|---|
| 316 | 317 | | 4. One member who represents A statewide association of businesses in this state. |
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| 317 | 318 | | |
|---|
| 318 | 319 | | 5. One member who represents a national association in this state that is comprised of private, independently owned and operated businesses in this state. |
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| 319 | 320 | | |
|---|
| 320 | 321 | | B. Members of the advisory committee shall serve five-year terms. the initial members shall assign themselves by lot to one term of three years, two terms of four years and two terms of five years in office. |
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| 321 | 322 | | |
|---|
| 322 | 323 | | C. The advisory committee shall submit recommendations to the authority relating to municipal and county support for economic development projects to be added to the data reported pursuant to section 41-1504, subsection F. END_STATUTE |
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| 323 | 324 | | |
|---|
| 324 | 325 | | Sec. 5. Section 41-1545.02, Arizona Revised Statutes, is amended to read: |
|---|
| 325 | 326 | | |
|---|
| 326 | 327 | | START_STATUTE41-1545.02. Grants from the Arizona competes fund |
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| 327 | 328 | | |
|---|
| 328 | 329 | | A. The chief executive officer may negotiate the award of monies from the Arizona competes fund. The monies shall be paid, by grant, for the purposes of: |
|---|
| 329 | 330 | | |
|---|
| 330 | 331 | | 1. Attracting, expanding or retaining Arizona basic enterprises that meet the requirements prescribed by subsection B of this section, that achieve the performance and qualification targets developed under subsection C of this section and that enter into an agreement with the chief executive officer as provided by subsection C of this section. In awarding monies pursuant to this paragraph, the chief executive officer shall give preference to job training and infrastructure activities that create private sector jobs. |
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| 331 | 332 | | |
|---|
| 332 | 333 | | 2. Supporting and advancing programs and projects for microenterprises, rural businesses, small businesses and business development that enhance economic development. |
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| 333 | 334 | | |
|---|
| 334 | 335 | | B. To be eligible to receive a deal closing grant under subsection A, paragraph 1 of this section, an applicant must: |
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| 335 | 336 | | |
|---|
| 336 | 337 | | 1. Be in good standing under the laws of the state in which the applicant was formed or organized, as evidenced by a certificate issued by the secretary of state or other state official having custody of the records pertaining to entities or other organizations formed under the laws of that state. |
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| 337 | 338 | | |
|---|
| 338 | 339 | | 2. Owe no delinquent taxes to a taxing jurisdiction in this state. |
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| 339 | 340 | | |
|---|
| 340 | 341 | | 3. Qualify as an Arizona basic industry. |
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| 341 | 342 | | |
|---|
| 342 | 343 | | 4. Pay compensation that exceeds, on average, one hundred percent of the median wage by county as determined annually by the authority. |
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| 343 | 344 | | |
|---|
| 344 | 345 | | 5. Include health insurance for employees for which the applicant pays at least sixty-five percent of the premium or membership cost. |
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| 345 | 346 | | |
|---|
| 346 | 347 | | 6. Demonstrate by analysis by an independent third party that estimated income, property and transaction privilege tax and government fee revenues in this state will exceed state incentives. |
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| 347 | 348 | | |
|---|
| 348 | 349 | | C. Before awarding a grant from the fund under this section, the chief executive officer must enter into a written agreement with the applicant specifying that: |
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| 349 | 350 | | |
|---|
| 350 | 351 | | 1. A reasonable percentage of the total amount of the grant may be withheld until the recipient meets specified performance targets. |
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| 351 | 352 | | |
|---|
| 352 | 353 | | 2. If the chief executive officer finds that the grant recipient has not met each of the performance targets specified in the agreement as of a date stated in the agreement: |
|---|
| 353 | 354 | | |
|---|
| 354 | 355 | | (a) The recipient must repay the grant and any related interest to this state at an agreed rate and on agreed terms. The repayment may be prorated to reflect partial attainment of performance targets. |
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| 355 | 356 | | |
|---|
| 356 | 357 | | (b) The chief executive officer shall not disburse any remaining grant money to the recipient under the agreement. |
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| 357 | 358 | | |
|---|
| 358 | 359 | | (c) The chief executive officer may assess specified penalties against the recipient for noncompliance. |
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| 359 | 360 | | |
|---|
| 360 | 361 | | 3. If any part of the grant is used to build a capital improvement, this state may: |
|---|
| 361 | 362 | | |
|---|
| 362 | 363 | | (a) Retain a lien or other security interest in the improvement in proportion to the percentage of the grant amount used to pay for the improvement. |
|---|
| 363 | 364 | | |
|---|
| 364 | 365 | | (b) Require the recipient, if the improvement is sold, to: |
|---|
| 365 | 366 | | |
|---|
| 366 | 367 | | (i) Repay to this state the grant monies used to pay for the improvement, with interest at a rate and according to terms stated in the agreement. |
|---|
| 367 | 368 | | |
|---|
| 368 | 369 | | (ii) Share with this state a proportionate amount of any profit realized from the sale. |
|---|
| 369 | 370 | | |
|---|
| 370 | 371 | | D. The chief executive officer shall report to the president of the senate and speaker of the house of representatives on a quarterly basis regarding any amendments to any written agreement executed pursuant to subsection C of this section. The chief executive officer shall track the status and completion of any agreement provisions and amendment provisions and retain supporting documentation for inspection on request. |
|---|
| 371 | 372 | | |
|---|
| 372 | 373 | | D. e. The chief executive officer must determine: |
|---|
| 373 | 374 | | |
|---|
| 374 | 375 | | 1. The performance targets and dates required to be included in each grant agreement. |
|---|
| 375 | 376 | | |
|---|
| 376 | 377 | | 2. If the grant agreement includes withholding a percentage of the grant until the recipient meets the performance targets, the percentage of the grant money to be withheld. |
|---|
| 377 | 378 | | |
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| 378 | 379 | | E. f. Before awarding a grant from the fund under this section, the authority must prepare a written statement, signed by the chief executive officer, that, specifically and in detail, assesses the direct economic impact of the grant. The statement must: |
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| 379 | 380 | | |
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| 380 | 381 | | 1. Include a finding that the enterprise is clearly in the best interests of this state. |
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| 381 | 382 | | |
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| 382 | 383 | | 2. Set forth the evidence and reasons supporting this finding, including: |
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| 383 | 384 | | |
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| 384 | 385 | | (a) The estimated annual tax revenue accruing to this state and its political subdivisions as a direct or indirect result of the enterprise. |
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| 385 | 386 | | |
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| 386 | 387 | | (b) The public benefit of the enterprise from the employment base, including the estimated number and the median wage of jobs to be created in this state by the potential recipient each year. |
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| 387 | 388 | | |
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| 388 | 389 | | (c) The extent to which the economic development from the enterprise will raise the standard of living of affected persons, increases free enterprise growth and increases the quality of life in this state. |
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| 389 | 390 | | |
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| 390 | 391 | | (d) The ratio of economic benefit from wages paid and capital investment made by the enterprise to the amount of the grant. |
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| 391 | 392 | | |
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| 392 | 393 | | (e) The contribution from the enterprise to the growth of existing businesses and creation of new businesses and business clusters. |
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| 393 | 394 | | |
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| 394 | 395 | | (f) Whether the enterprise will provide its employees with benefits such as retirement, child care, educational reimbursements and training. |
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| 395 | 396 | | |
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| 396 | 397 | | (g) The percentage of the products or services the enterprise will export outside of this state over the first five years of operation. |
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| 397 | 398 | | |
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| 398 | 399 | | (h) Any other information the chief executive officer considers to be necessary for inclusion in the statement. |
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| 399 | 400 | | |
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| 400 | 401 | | F. g. Beginning from and after June 30, 2017, on the last day of each fiscal year, thirty percent of the monies appropriated to the fund in the fiscal year, minus the amount of grants awarded in the fiscal year for the purposes prescribed in subsection A, paragraph 2 of this section, not to exceed the unencumbered monies in the fund on the last day of the fiscal year, are reserved for grants for the purposes prescribed in subsection A, paragraph 2 of this section. Of the amount reserved for grants under this subsection, thirty percent or an amount not to exceed one million dollars $1,000,000 shall be used for grants to support and advance microenterprise development in this state. |
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| 401 | 402 | | |
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| 402 | 403 | | G. h. In addition to the monies reserved pursuant to subsection F g of this section, at least twenty-five percent of the monies appropriated to the fund each year shall be reserved to support and advance activities and projects for businesses located in a county with a population of less than two million persons or on tribal lands, or both. Monies not awarded pursuant to this subsection within nine months after the beginning of the fiscal year may be awarded to activities and projects for businesses that are located in any county. In awarding monies reserved pursuant to this subsection, the chief executive officer shall give priority to a county that is located along the Arizona-Mexico border or a county in which a military facility is located or to projects located on tribal lands. END_STATUTE |
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| 403 | 404 | | |
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| 404 | 405 | | Sec. 6. Repeal |
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| 405 | 406 | | |
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| 406 | 407 | | Sections 41-3024.08, 41-3024.09, 41-3024.10, 41-3024.14, 41-3024.17, 41-3024.23 and 41-3024.31, Arizona Revised Statutes, are repealed. |
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| 407 | 408 | | |
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| 408 | 409 | | Sec. 7. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding sections 41-3029.13, 41-3030.12, 41-3032.05, 41-3032.08, 41-3032.09, 41-3032.10 and 41-3032.17, to read: |
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| 409 | 410 | | |
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| 410 | 411 | | START_STATUTE41-3029.13. Arizona commerce authority; termination July 1, 2029 |
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| 411 | 412 | | |
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| 412 | 413 | | A. The Arizona commerce authority terminates on July 1, 2029. |
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| 413 | 414 | | |
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| 414 | 415 | | B. Title 41, chapter 10 and this section are repealed on January 1, 2030.END_STATUTE |
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| 415 | 416 | | |
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| 416 | 417 | | START_STATUTE41-3030.12. Department of administration; termination July 1, 2030 |
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| 417 | 418 | | |
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| 418 | 419 | | A. The department of administration terminates on July 1, 2030. |
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| 419 | 420 | | |
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| 420 | 421 | | B. Title 41, chapter 4, articles 1, 2, 3, 4, 5 and 7, title 18, chapter 1 and this section are repealed on January 1, 2031. END_STATUTE |
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| 421 | 422 | | |
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| 422 | 423 | | START_STATUTE41-3032.05. Governor's office on tribal relations; termination July 1, 2032 |
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| 423 | 424 | | |
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| 424 | 425 | | A. The governor's office on tribal relations terminates on July 1, 2032. |
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| 425 | 426 | | |
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| 426 | 427 | | B. Title 41, chapter 15 and this section are repealed on January 1, 2033. END_STATUTE |
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| 427 | 428 | | |
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| 428 | 429 | | START_STATUTE41-3032.08. Arizona historical society; termination July 1, 2032 |
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| 429 | 430 | | |
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| 430 | 431 | | A. The Arizona historical society terminates on July 1, 2032. |
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| 431 | 432 | | |
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| 432 | 433 | | B. Title 41, chapter 4.1, article 1 and this section are repealed on January 1, 2033. END_STATUTE |
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| 433 | 434 | | |
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| 434 | 435 | | START_STATUTE41-3032.09. Prescott historical society of Arizona; termination July 1, 2032 |
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| 435 | 436 | | |
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| 436 | 437 | | A. The Prescott historical society of Arizona terminates on July 1, 2032. |
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| 437 | 438 | | |
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| 438 | 439 | | B. Title 41, chapter 4.1, article 2 and this section are repealed on January 1, 2033.END_STATUTE |
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| 439 | 440 | | |
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| 440 | 441 | | START_STATUTE41-3032.10. State personnel board; termination July 1, 2032 |
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| 441 | 442 | | |
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| 442 | 443 | | A. The state personnel board terminates on July 1, 2032. |
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| 443 | 444 | | |
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| 444 | 445 | | B. Title 41, chapter 4, article 6 and this section are repealed on January 1, 2033. END_STATUTE |
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| 445 | 446 | | |
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| 446 | 447 | | START_STATUTE41-3032.17. Occupational safety and health advisory committee; termination July 1, 2032 |
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| 447 | 448 | | |
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| 448 | 449 | | A. The occupational safety and health advisory committee terminates on July 1, 2032. |
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| 449 | 450 | | |
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| 450 | 451 | | B. Section 23-409 and this section are repealed on January 1, 2033. END_STATUTE |
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| 451 | 452 | | |
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| 452 | 453 | | Sec. 8. Purpose |
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| 453 | 454 | | |
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| 454 | 455 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the Arizona commerce authority to facilitate the beneficial economic growth and development of this state and to promote prosperity through the development and protection of the legitimate interests of Arizona business, industry and commerce within and outside this state. |
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| 455 | 456 | | |
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| 456 | 457 | | Sec. 9. Purpose |
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| 457 | 458 | | |
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| 458 | 459 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the department of administration in order to provide services to state government in the following areas: |
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| 459 | 460 | | |
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| 460 | 461 | | 1. Automation. |
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| 461 | 462 | | |
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| 462 | 463 | | 2. Finance. |
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| 463 | 464 | | |
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| 464 | 465 | | 3. Personnel administration. |
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| 465 | 466 | | |
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| 466 | 467 | | 4. Public buildings maintenance. |
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| 467 | 468 | | |
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| 468 | 469 | | 5. Surplus property. |
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| 469 | 470 | | |
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| 470 | 471 | | 6. Risk management. |
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| 471 | 472 | | |
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| 472 | 473 | | 7. School facilities. |
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| 473 | 474 | | |
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| 474 | 475 | | Sec. 10. Purpose |
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| 475 | 476 | | |
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| 476 | 477 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature establishes the governor's office on tribal relations in order to assist and support tribal nations and communities in this state and to enhance government-to-government relations between the twenty-two tribal nations within the boundaries of this state. |
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| 477 | 478 | | |
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| 478 | 479 | | Sec. 11. Purpose |
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| 479 | 480 | | |
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| 480 | 481 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the Arizona historical society to purchase, receive, hold, lease and sell property for the benefit of this state and the use of the society. |
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| 481 | 482 | | |
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| 482 | 483 | | Sec. 12. Purpose |
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| 483 | 484 | | |
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| 484 | 485 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the Prescott historical society of Arizona in order to purchase, receive, hold, lease and sell property for the benefit of this state and the use of the society. |
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| 485 | 486 | | |
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| 486 | 487 | | Sec. 13. Purpose |
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| 487 | 488 | | |
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| 488 | 489 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the state personnel board to hear and review appeals relating to personnel actions taken against state employees and dismissals from state service, suspensions for more than forty hours and demotions resulting from disciplinary actions. |
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| 489 | 490 | | |
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| 490 | 491 | | Sec. 14. Purpose |
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| 491 | 492 | | |
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| 492 | 493 | | Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the occupational safety and health advisory committee to assist the industrial commission in drafting standards and rules. |
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| 493 | 494 | | |
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| 494 | 495 | | Sec. 15. Retroactivity |
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| 495 | 496 | | |
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| 496 | 497 | | Sections 6 and 7 of this act apply retroactively to from and after July 1, 2024. |
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