ARIZONA STATE SENATE RESEARCH STAFF TO: MEMBERS OF THE SENATE GOVERNMENT COMMITTEE DATE: March 25, 2025 SUBJECT: Strike everything amendment to H.B. 2872, relating to government Purpose Requires, beginning on the effective date, any executive director or director who serves at the pleasure of the Governor who is subject to Senate confirmation and who is retained from any previous Governor's administration to be renominated by the current Governor, with the consent of the Senate. Requires the Chief Executive Officer (CEO) of the Arizona Commerce Authority (ACA) to be appointed by the Governor, rather than employed and contracted by the ACA Board of Directors. Background When provided by law, the Governor must nominate an officer for state office to an appointive office and, with the consent of the Senate, appoint the officer to the office. Every officer who is subject to confirmation by the Senate and whose term is not fixed by law holds office at the pleasure of the appointing power, but a nominee may not serve for longer than one year after nomination without Senate consent. A nominee must assume and discharge the duties of the office until the Senate rejects or takes no action regarding the nomination. If the Senate rejects a nomination, the nominee is not appointed, and the Governor must nominate another person who meets the requirements for the office. If the Senate takes no formal action on the nomination during the Legislative Session, or if a nomination other than the one that is required to be sent to the Senate during the first week of the Legislative Session is not received during the Session, the Governor must, after the close of the Legislative Session, appoint the nominee to serve, and the nominee must discharge the duties of the office, subject to confirmation during the next Legislative Session (A.R.S. § 38-211). The Board of Directors of the ACA must employ a CEO and prescribe the terms and conditions of the CEO's employment. The CEO serves at the pleasure of the Board of Directors of the ACA under the terms of a performance-based contract. The CEO is responsible for managing, administering and supervising the activities of the ACA and must negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the authority or to carry out or accomplish the duties of the ACA (A.R.S. § 41-1503). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Requires, beginning on the effective date, any executive director or director who serves at the pleasure of the Governor who is subject to confirmation and who is retained from any previous Governor's administration to be renominated by the current Governor with the consent of the Senate. SAMUEL ROSENBERG LEGISLATIVE RESEARCH ASSISTANT ANALYST ANNA NGUYEN LEGISLATIVE RESEARCH ANALYST GOVERNMENT COMMITTEE Telephone: (602) 926-3171 STRIKER MEMO H.B. 2872 Page 2 2. Requires the CEO of the ACA to be appointed by the Governor, to serve at the pleasure of the Governor, rather than employed by the ACA Board of Directors, to serve at the pleasure of the Board under the terms of a performance-based contract. 3. Makes technical and conforming changes. 4. Becomes effective on the general effective date.