House Engrossed appropriation; office of defense innovation (now: office of defense innovation) State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2872 AN ACT Amending title 41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41-1529; relating to the arizona commerce authority. (TEXT OF BILL BEGINS ON NEXT PAGE)
House Engrossed appropriation; office of defense innovation (now: office of defense innovation)
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HOUSE BILL 2872
House Engrossed
appropriation; office of defense innovation
(now: office of defense innovation)
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
HOUSE BILL 2872
AN ACT
Amending title 41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41-1529; relating to the arizona commerce authority.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1529, to read: START_STATUTE41-1529. Arizona office of defense innovation; director; advisory board; duties; annual report; definition A. The Arizona office of defense innovation is established in the authority. THE office shall foster partnerships to drive innovation for defense TECHNOLOGIES in this state and leverage assets in this state to attract federal and private defense investments. B. The governor shall appoint a director of the office pursuant to section 38-211. C. The Arizona office of defense innovation advisory board is established and consists of the following members: 1. The governor or the governor's designee, who shall serve as the chairperson. 2. The director of the office or the DIRECTOR'S designee. 3. Five members who are appointed by the governor. 4. Five members who are appointed by the president of the senate. 5. Five members who are appointed by the speaker of the house of representatives. D. The members who are appointed pursuant to subsection C of this section shall serve staggered three-year terms, shall be from geographically diverse areas in this state and shall be united states citizens and are required to pass a BACKGROUND check before appointment to the BOARD. The members appointed may represent or have relevant expertise in any of the following: 1. Military installations in this state. 2. Nontraditional organizations in defense-related industries. 3. Academic institutions with relevant expertise in defense. 4. economic development agencies in this state. 5. Entrepreneurial support organizations. E. The office shall: 1. Act as a liaison between the state and the United States Department of Defense and any other national security organizations, including state and federal agencies. 2. Increase the amount of federal funding in this state for defense. 3. Support the ongoing mission of the united states department of defense in this state and expand and enhance the growth of the mission throughout this state. 4. Provide support to companies based in this state that are seeking federal defense contracts. 5. Identify and support emerging technology that can benefit defense industries and provide commercialization support services to accelerate technology development. 6. Collaborate with universities and research institutions to increase the amount of defense-related research and development funding for applied research and advance prototyping of critical defense-related research, and COORDINATE and facilitate rapid technology transfer and transition capabilities. 7. Enhance workforce development programming that prepares innovators and intrapreneurs to support industries of the future. 8. Advocate for this state's defense interests in key policy areas across government. 9. Develop and implement a biannual strategic plan to enhance competitiveness in defense-related industries in this state. 10. Enter into public-private partnership contracts with nonprofit organizations in this state that have all of the following: (a) Experienced and qualified staff members who can support the full scope of work through in-house support, teaming and subcontracting agreements. (b) demonstrated past performance with defense and federal contracting. (c) DEMONSTRATED command of the defense ecosystem in this state. (d) Demonstrated relationships across the united states department of defense and strategic leaders and tactical level commands. (e) Active facility security CLEARANCE and the ability to hold personal security CLEARANCES. (f) An accounting system that is compliant with a defense contract audit agency. 11. On or before December 31 of each year, submit a report to the governor, the president of the senate and the speaker of the house of representatives regarding the Office's activities, ACHIEVEMENTS and any RECOMMENDATIONS for improving the office. F. THE OFFICE MAY: 1. ACCEPT ANY GRANTS, GIFTS, DEVISES AND DONATIONS FROM ANY PUBLIC OR PRIVATE SOURCE TO ASSIST IN CARRYING OUT THE PURPOSES OF THIS SECTION. 2. Request assistance from representatives of other agencies in this state to maximize economic development OPPORTUNITIES. G. For the purposes of this section, "Office" means THE ARIZONA OFFICE OF DEFENSE INNOVATION. END_STATUTE Sec. 2. Legislative findings The legislature finds that: 1. The defense industry is a critical component of the economy in this state that contributes significantly to job creation, innovation and national security. 2. States such as Michigan, Indiana and Utah have successfully established offices dedicated to defense innovation that have captured significant economic development opportunities. 3. This state has unique resources, including the state's proximity to military installations and a robust technology sector, which position this state to excel in defense-related economic activities. Sec. 3. Short title This act may be cited as the "Arizona Office of Defense Innovation Act".
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1529, to read:
START_STATUTE41-1529. Arizona office of defense innovation; director; advisory board; duties; annual report; definition
A. The Arizona office of defense innovation is established in the authority. THE office shall foster partnerships to drive innovation for defense TECHNOLOGIES in this state and leverage assets in this state to attract federal and private defense investments.
B. The governor shall appoint a director of the office pursuant to section 38-211.
C. The Arizona office of defense innovation advisory board is established and consists of the following members:
1. The governor or the governor's designee, who shall serve as the chairperson.
2. The director of the office or the DIRECTOR'S designee.
3. Five members who are appointed by the governor.
4. Five members who are appointed by the president of the senate.
5. Five members who are appointed by the speaker of the house of representatives.
D. The members who are appointed pursuant to subsection C of this section shall serve staggered three-year terms, shall be from geographically diverse areas in this state and shall be united states citizens and are required to pass a BACKGROUND check before appointment to the BOARD. The members appointed may represent or have relevant expertise in any of the following:
1. Military installations in this state.
2. Nontraditional organizations in defense-related industries.
3. Academic institutions with relevant expertise in defense.
4. economic development agencies in this state.
5. Entrepreneurial support organizations.
E. The office shall:
1. Act as a liaison between the state and the United States Department of Defense and any other national security organizations, including state and federal agencies.
2. Increase the amount of federal funding in this state for defense.
3. Support the ongoing mission of the united states department of defense in this state and expand and enhance the growth of the mission throughout this state.
4. Provide support to companies based in this state that are seeking federal defense contracts.
5. Identify and support emerging technology that can benefit defense industries and provide commercialization support services to accelerate technology development.
6. Collaborate with universities and research institutions to increase the amount of defense-related research and development funding for applied research and advance prototyping of critical defense-related research, and COORDINATE and facilitate rapid technology transfer and transition capabilities.
7. Enhance workforce development programming that prepares innovators and intrapreneurs to support industries of the future.
8. Advocate for this state's defense interests in key policy areas across government.
9. Develop and implement a biannual strategic plan to enhance competitiveness in defense-related industries in this state.
10. Enter into public-private partnership contracts with nonprofit organizations in this state that have all of the following:
(a) Experienced and qualified staff members who can support the full scope of work through in-house support, teaming and subcontracting agreements.
(b) demonstrated past performance with defense and federal contracting.
(c) DEMONSTRATED command of the defense ecosystem in this state.
(d) Demonstrated relationships across the united states department of defense and strategic leaders and tactical level commands.
(e) Active facility security CLEARANCE and the ability to hold personal security CLEARANCES.
(f) An accounting system that is compliant with a defense contract audit agency.
11. On or before December 31 of each year, submit a report to the governor, the president of the senate and the speaker of the house of representatives regarding the Office's activities, ACHIEVEMENTS and any RECOMMENDATIONS for improving the office.
F. THE OFFICE MAY:
1. ACCEPT ANY GRANTS, GIFTS, DEVISES AND DONATIONS FROM ANY PUBLIC OR PRIVATE SOURCE TO ASSIST IN CARRYING OUT THE PURPOSES OF THIS SECTION.
2. Request assistance from representatives of other agencies in this state to maximize economic development OPPORTUNITIES.
G. For the purposes of this section, "Office" means THE ARIZONA OFFICE OF DEFENSE INNOVATION. END_STATUTE
Sec. 2. Legislative findings
The legislature finds that:
1. The defense industry is a critical component of the economy in this state that contributes significantly to job creation, innovation and national security.
2. States such as Michigan, Indiana and Utah have successfully established offices dedicated to defense innovation that have captured significant economic development opportunities.
3. This state has unique resources, including the state's proximity to military installations and a robust technology sector, which position this state to excel in defense-related economic activities.
Sec. 3. Short title
This act may be cited as the "Arizona Office of Defense Innovation Act".