HB 2471 — rulemaking; legislative approval

rules;

vehicle replacement rate;

participating agencies;

coordinator;

public service announcements;

annual report A.

The director shall operate the state motor vehicle fleet for the purpose of providing fleet operation services to agencies.

The director shall make fleet operation services available to an agency on the request of the chosen representative for that agency.

B.

The director is responsible for administering the state motor vehicle fleet, including:

ProcuringFulfilling motoran vehiclesobjective forrelated theto statejob motorcreation, vehicleeconomic fleet.development or economic expansion in this state.

NotwithstandingReducing titleor 41,ameliorating chaptera 23,regulatory articleburden 8,on administering the surpluspublic, andwhile saleachieving of motor vehicles in the statesame motorregulatory vehicleobjective. fleet.

C.

The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state-owned motor vehicle.

D.

The director may adopt rules necessary to administer this article.

E.

The department shall recover all costs for fleet operation services that are provided to an agency.

Each agency shall pay from available monies the cost of fleet operation services received from the department at a rate determined by the director, including a separate vehicle replacement rate for motor vehicle replacements.

The director shall deposit, pursuant to sections 35-146 and 35-147, monies received for fleet operation services in the state fleet operations fund established by section 28-475.

The director shall deposit, pursuant to sections 35-146 and 35-147, monies received to pay the vehicle replacement rate in the state vehicle replacement fund established by section 28-476.

-4- Senate Amendments to H.B.

2471 F.

The following agencies are excluded from participation in the state motor vehicle fleet:

1.

The department of public safety.

2.

The department of economic security.

ThePreventing statea departmentsignificant ofthreat corrections.to public health, peace or safety.

UniversitiesAvoiding andviolating communitya colleges.court order or federal law that would result in sanctions by a federal court for failure to conduct the rulemaking action.

TheComplying Arizonawith a new state schoolsstatutory foror regulatory requirement if the deafcompliance andis related to a condition for the blind.receiving federal monies or participating in any federal program.

TheComplying cottonwith researcha andnew protectionor council.existing state statutory requirement.

TheFulfilling Arizonaan commerceobligation authority.related to fees or any other action necessary to implement the state budget that is certified by the governor's office of strategic planning and budgeting.

7.Adopting a rule or other item that is exempt from this chapter.

The department of child safety.

8.Matters pertaining to the control, mitigation or eradication of waste, fraud or abuse within a state agency or wasteful, fraudulent or abusive activities perpetrated against a state agency.

The department of transportation.

G.

The director shall appoint a state motor vehicle fleet coordinator.

H.

An agency may not purchase, lease or rent a motor vehicle unless the agency is excluded from participation in the state motor vehicle fleet by subsection F of this section.

The director may withhold registration for any motor vehicle that is purchased, leased or rented in violation of this subsection.

I.

Notwithstanding subsection H of this section, an agency that administers a separate account pursuant to section 28-476, subsection C shall control the purchase, lease or rental of motor vehicles.

Vehicles purchased, leased or rented under this subsection shall be used by the agency only for the agency's purposes.

J.

An agency listed in subsection F of this section may elect to participate in the state motor vehicle fleet by executing an interagency service agreement between the agency and the department.

K.

A governmental budget unit of this state that is not an agency may elect to participate in the state motor vehicle fleet by entering into an interagency service agreement with the department.

L.

An agency, including an agency listed in subsection F of this section, may accept compensation for placing public service announcements -5- Senate Amendments to H.B.

2471 on state-owned motor vehicles, and monies received shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

The agency director shall determine the appropriateness of the announcements, may exempt any motor vehicles that are not suitable for advertising and may contract with private parties to design and place the announcements.

M.

NOTWITHSTANDING SUBSECTION H OF THIS SECTION, THE ARIZONA COMMERCE AUTHORITY MAY PURCHASE, LEASE OR RENT MOTOR VEHICLES USING NONSTATE MONIES.

VEHICLES PURCHASED, LEASED OR RENTED UNDER THIS SUBSECTION SHALL BE USED BY THE ARIZONA COMMERCE AUTHORITY ONLY FOR THE ARIZONA COMMERCE AUTHORITY'S PURPOSES.

M.

N.

On or before October 1 of each year, the department shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report that accounts for all monies deposited in the state fleet operations fund established by section 28-475 and the state vehicle replacement fund established by section 28-476, including any monies allocated to separate agency accounts.

The report shall also include the number of motor vehicles that were replaced in the prior fiscal year, the number of motor vehicles at each agency, the replacement life cycle for each motor vehicle and the number of motor vehicles the department identifies as not requiring replacement.

Sec.

3.

Section 41-1511, Arizona Revised Statutes, is transferred and renumbered for placement in title 41, chapter 4, article 1, Arizona Revised Statutes, as section 41-710.03 and, as so renumbered, is amended to read:

41-710.03.

State broadband office;

director;

powers and duties A.

The state broadband office is established in the authority DEPARTMENT.

B.

The state broadband office consists of the state broadband director, who serves at the pleasure of the chief executive officer DIRECTOR OF THE DEPARTMENT OF ADMINISTRATION.

The chief executive officer -6- Senate Amendments to H.B.

2471 DIRECTOR OF THE DEPARTMENT OF ADMINISTRATION may hire staff for the state broadband office to do the following:

1.

Coordinate the implementation of local, state and federal broadband programs.

2.

Coordinate and execute federal broadband grant applications with public and private stakeholders.

3.

Provide guidance and support to stakeholders in navigating local, state and federal regulatory and permitting processes for broadband infrastructure projects.

4.

Provide guidance and support to local and state public and private partners on federal, state and local broadband policies and practices.

5.

Solicit feedback from stakeholders to develop long-term local, state and federal broadband policy priorities that may influence local, state and federal broadband policies and programs.

6.

Work with local partners, state and federal agencies and telecommunication providers to develop plans to improve internet connectivity and resiliency in this state.

C.

The state broadband office shall publish and maintain a state broadband plan that further elaborates on the strategies and tactics to achieve this state's broadband goals.

D.

The state broadband office may develop rules and guidelines to implement this section.

Sec.

4.

Title 41, chapter 6, article 4.1, Arizona Revised Statutes, is amended by adding section 41-1049, to read:

41-1049.

Proposed rulemaking;

regulatory costs;

legislative ratification;

applicability A.

NOTWITHSTANDING ANY OTHER LAW, AN AGENCY SHALL SUBMIT A PROPOSED RULE THAT IS ESTIMATED TO INCREASE REGULATORY COSTS IN THIS STATE BY MORE THAN $100,000 WITHIN FIVE YEARS AFTER IMPLEMENTATION TO THE OFFICE OF ECONOMIC OPPORTUNITY FOR REVIEW.

IF THE OFFICE OF ECONOMIC OPPORTUNITY -7- Senate Amendments to H.B.

2471 CONFIRMS THAT THE PROPOSED RULE IS ESTIMATED TO INCREASE REGULATORY COSTS IN THIS STATE BY MORE THAN $500,000 WITHIN FIVE YEARS AFTER IMPLEMENTATION, THE PROPOSED RULE MAY NOT BECOME EFFECTIVE UNTIL THE LEGISLATURE ENACTS LEGISLATION RATIFYING THE PROPOSED RULE.

B.

THE OFFICE OF ECONOMIC OPPORTUNITY SHALL SUBMIT THE PROPOSED RULE TO THE ADMINISTRATIVE RULES OVERSIGHT COMMITTEE NOT LATER THAN THIRTY DAYS BEFORE THE NEXT REGULAR LEGISLATIVE SESSION.

THE COMMITTEE MUST SUBMIT THE PROPOSED RULE TO THE LEGISLATURE AS SOON AS PRACTICABLE.

C.

ANY MEMBER OF THE LEGISLATURE MAY INTRODUCE LEGISLATION TO RATIFY THE PROPOSED RULE.

THE PROPOSED RULE IS EXEMPT FROM SECTION 41-1024, SUBSECTION B.

D.

THE AGENCY MAY NOT FILE A FINAL RULE WITH THE SECRETARY OF STATE BEFORE OBTAINING LEGISLATIVE APPROVAL OF THE RULE THROUGH LEGISLATION RATIFYING THE PROPOSED RULE.

IF THE LEGISLATURE DOES NOT ENACT LEGISLATION TO RATIFY THE PROPOSED RULE DURING THE CURRENT LEGISLATIVE SESSION, THE AGENCY SHALL TERMINATE THE PROPOSED RULEMAKING BY PUBLISHING A NOTICE OF TERMINATION IN THE REGISTER.

E.

IF A PERSON IS REGULATED BY AN AGENCY THAT IS PROPOSING A RULE, THAT PERSON MAY REQUEST THE OFFICE OF ECONOMIC OPPORTUNITY TO REVIEW THE RULE.

A LEGISLATOR MAY ALSO REQUEST THE OFFICE OF ECONOMIC OPPORTUNITY TO REVIEW A PROPOSED RULE.

F.

THIS SECTION DOES NOT APPLY TO EMERGENCY RULES ADOPTED PURSUANT TO SECTION 41-1026.

G.

BEGINNING ON THE EFFECTIVE DATE OF THIS SECTION, A RULE PRESCRIBED BY SUBSECTION A OF THIS SECTION IS VOID AND UNENFORCEABLE UNLESS THE RULE IS RATIFIED AS PRESCRIBED BY THIS SECTION.

H.

THIS SECTION DOES NOT APPLY TO THE CORPORATION COMMISSION.

Sec.

5.

Heading change The chapter heading of title 41, chapter 10, Arizona Revised Statutes, is changed from "ARIZONA COMMERCE AUTHORITY" to "COMMERCE".

-8- Senate Amendments to H.B.

2471 Sec.

6.

Section 41-1502, Arizona Revised Statutes, is amended to read:

41-1502.

Arizona commerce authority;

board of directors;

advisory council;

conduct of office;

audit;

annual report;

definitions A.

The Arizona commerce authority is established IN THE OFFICE OF ECONOMIC OPPORTUNITY.

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.

-9- Senate Amendments to H.B.

2471 (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.

1.

NINE MEMBERS WHO ARE APPOINTED BY THE GOVERNOR CONSISTING OF THE FOLLOWING:

(a) THREE MEMBERS WHO ARE CHIEF EXECUTIVE OFFICERS OF SMALL BUSINESSES IN THIS STATE WITH FEWER THAN FIFTY EMPLOYEES.

(b) TWO MEMBERS WHO ARE FROM A LIST OF THREE MEMBERS SUBMITTED TO THE GOVERNOR JOINTLY BY THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(c) FOUR MEMBERS OF THE PUBLIC.

2.

EIGHT MEMBERS CONSISTING OF THE FOLLOWING:

(a) THREE MEMBERS WHO ARE THE CHIEF EXECUTIVE OFFICERS OF SMALL BUSINESSES IN THIS STATE WITH FEWER THAN TWENTY-FIVE EMPLOYEES AND WHO ARE APPOINTED BY THE PRESIDENT OF THE SENATE.

(b) THE DIRECTOR OF THE JOINT LEGISLATIVE BUDGET COMMITTEE OR THE DIRECTOR'S DESIGNEE.

(c) ONE MEMBER WHO IS AN ATTORNEY WITH EXPERIENCE LITIGATING CONSTITUTIONAL CASES INVOLVING THE GIFT CLAUSE AND WHO IS APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

-10- Senate Amendments to H.B.

2471 (d) ONE MEMBER WHO IS FROM AN ORGANIZATION THAT REPRESENTS INDEPENDENT BUSINESSES IN THIS STATE AND WHO IS APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(e) ONE MEMBER WHO REPRESENTS THE HOMEBUILDING INDUSTRY IN THIS STATE AND WHO IS APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(f) ONE MEMBER WHO REPRESENTS A TAX RESEARCH ORGANIZATION IN THIS STATE AND WHO IS APPOINTED BY THE PRESIDENT OF THE SENATE.

C.

THE BOARD SHALL ESTABLISH AN ADVISORY COUNCIL CONSISTING OF THE FOLLOWING MEMBERS FROM THE BOARD:

1.

THE DIRECTOR OF THE JOINT LEGISLATIVE BUDGET COMMITTEE OR THE DIRECTOR'S DESIGNEE.

2.

THE MEMBER FROM AN ORGANIZATION REPRESENTING INDEPENDENT BUSINESSES IN THIS STATE.

3.

THE MEMBER REPRESENTING THE HOMEBUILDING INDUSTRY IN THIS STATE.

4.

THE MEMBER REPRESENTING A TAX RESEARCH ORGANIZATION IN THIS STATE.

5.

THE MEMBER WHO IS AN ATTORNEY WITH EXPERIENCE LITIGATING CONSTITUTIONAL CASES INVOLVING THE GIFT CLAUSE TO SERVE AS THE CHAIRPERSON OF THE ADVISORY COUNCIL.

D.

THE ADVISORY COUNCIL SHALL:

1.

SURVEY ALL BUSINESSES IN THIS STATE TO ASSESS ALL OF THE FOLLOWING:

(a) ANY FACTORS THAT ARE INTEGRAL TO THE LOCATION OF THE BUSINESSES.

(b) ANY CONCERNS BUSINESS OWNERS IN THIS STATE HAVE FOR CONTINUED VIABILITY FOR THEIR BUSINESSES.

(c) CONSIDERATIONS POLICYMAKERS IN THIS STATE NEED TO ANALYZE TO MAKE THIS STATE MORE ENJOYABLE AND PRACTICABLE FOR BUSINESSES.

2.

ON OR BEFORE DECEMBER 31 OF EACH YEAR, SUBMIT A REPORT TO THE GOVERNOR, THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE CHAIRPERSON OF THE BOARD SUMMARIZING THE ADVISORY COUNCIL'S FINDINGS AND RECOMMENDATIONS CONCERNING THE ASSESSMENT PURSUANT -11- Senate Amendments to H.B.

2471 TO THIS SUBSECTION.

THE ADVISORY COUNCIL SHALL PROVIDE A COPY OF THIS REPORT TO THE SECRETARY OF STATE.

E.

THE BOARD SHALL MEET QUARTERLY AND AT THE CALL OF THE CHAIRPERSON.

C.

F.

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.

E.

G.

The governor shall appoint a cochairperson CHAIRPERSON 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.

-12- Senate Amendments to H.B.

2471 F.

H.

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.

I.

Board members SHALL:

1.

Serve without compensation but are eligible for reimbursement of expenses pursuant to section 41-1504, subsection E G, paragraph 1.

2.

ANNUALLY SUBMIT A COMPLETE FINANCIAL DISCLOSURE STATEMENT INDICATING ALL FINANCIAL HOLDINGS OF THE MEMBER TO THE CHIEF EXECUTIVE OFFICER AND THE CHAIRPERSON OF THE BOARD.

H.

J.

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.

K.

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 N.

J.

L.

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.

-13- Senate Amendments to H.B.

2471 K.

M.

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.

N.

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.

O.

The compensation of all officers and employees is considered a public record pursuant to title 39, chapter 1.

N.

P.

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.

Q.

All state agencies shall cooperate with the authority and make available data pertaining to the functions of the authority as requested by the authority.

R.

ON OR BEFORE DECEMBER 31 OF EACH YEAR, THE AUTHORITY SHALL SUBMIT A REPORT TO THE GOVERNOR, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES THAT IDENTIFIES THE NUMBER OF JOBS CREATED IN THIS STATE IN THE PREVIOUS CALENDAR YEAR AND CATEGORIZES EACH JOB AS EITHER A DIRECT JOB THAT WAS CREATED BY PROGRAMS ADMINISTERED BY THE AUTHORITY, AN INDIRECT JOB OR AN INDUCED JOB AND SHALL PROVIDE A COPY OF THIS REPORT TO THE SECRETARY OF STATE.

-14- Senate Amendments to H.B.

2471 S.

FOR THE PURPOSES OF THIS SECTION:

1.

"DIRECT JOB" MEANS EMPLOYMENT THAT IS CREATED TO FULFILL THE DEMAND FOR A PRODUCT OR SERVICE.

2.

"INDIRECT JOB" MEANS EMPLOYMENT THAT EXISTS TO PRODUCE GOODS AND SERVICES NEEDED BY THE WORKERS WHO HAVE DIRECT JOBS.

3.

"INDUCED JOB" MEANS EMPLOYMENT THAT IS CREATED BY THE PERSONAL SPENDING OF BOTH DIRECT AND INDIRECT WORKERS IN THIS STATE.

Sec.

7.

Section 41-1503, Arizona Revised Statutes, is amended to read:

41-1503.

Chief executive officer A.

The board of directors GOVERNOR shall employ APPOINT a chief executive officer and prescribe the terms and conditions of the chief executive officer's employment PURSUANT TO SECTION 38-211 FROM A LIST OF THREE QUALIFIED PERSONS SUBMITTED JOINTLY TO THE GOVERNOR BY THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

The chief executive officer serves at the pleasure of the board GOVERNOR under the terms of a performance based PERFORMANCE-BASED contract.

B.

The chief executive officer is responsible for managing, administering and supervising the activities of the authority.

C.

The chief executive officer shall negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the authority or to carry out or accomplish the purposes of this chapter.

Sec.

8.

Section 41-1504, Arizona Revised Statutes, is amended to read:

41-1504.

Powers and duties;

e-verify requirement;

definitions 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 -15- Senate Amendments to H.B.

2471 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.

5.

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 -16- Senate Amendments to H.B.

2471 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 at least the following information:

(a) The cumulative progress made toward its goals for job creation, capital investment and higher average wages.

(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.

-17- Senate Amendments to H.B.

2471 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.

7.

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.

8.

CONDUCT A WRITTEN EVALUATION FOR EACH GRANT THE AUTHORITY PROVIDES THAT DEMONSTRATES COMPLIANCE WITH THIS SECTION.

EACH EVALUATION SHALL BE MADE PUBLICLY AVAILABLE ON THE AUTHORITY'S WEBSITE.

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.

-18- Senate Amendments to H.B.

2471 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 AUTHORITY MAY NOT PROVIDE ANY GRANTS TO AN ENTITY IN THIS STATE UNLESS THE AUTHORITY DETERMINES THAT THE GRANT IS SERVING A PUBLIC PURPOSE AND THIS STATE RECEIVES SUFFICIENT CONSIDERATION IN EXCHANGE FOR THE GRANT.

F.

A TAXPAYER IN THIS STATE HAS STANDING TO CHALLENGE THE AUTHORITY'S COMPLIANCE WITH SUBSECTION E OF THIS SECTION.

THE TAXPAYER MAY RECOVER REASONABLE ATTORNEY FEES AND COSTS IF THE TAXPAYER PREVAILS IN THE ACTION.

E.

G.

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.

-19- Senate Amendments to H.B.

2471 (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.

H.

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.

I.

Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management.

H.

J.

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.

K.

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.

J.

L.

The authority is exempt from section 41-712, relating to the installation and maintenance of telecommunication systems.

K.

M.

The authority may NOT USE STATE MONIES TO lease or purchase motor vehicles for use by employees to conduct business activities.

The -20- Senate Amendments to H.B.

2471 authority is exempt from MAY PARTICIPATE IN THE STATE MOTOR VEHICLE FLEET PURSUANT TO section 28-472, relating to the state motor vehicle fleet, and.

FOR ANY MOTOR VEHICLES PURCHASED OR LEASED, THE AUTHORITY IS EXEMPT FROM title 38, chapter 3, article 10, relating to vehicle usage and markings.

L.

N.

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.

The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise.

O.

FOR THE PURPOSES OF THIS SECTION:

1.

"CONSIDERATION":

(a) MEANS AN EXCHANGE OF GOODS, SERVICES OR MONEY THAT IS PROPORTIONAL, DIRECT, CONTRACTUALLY OBLIGATORY AND FOR WHICH AN OBJECTIVE FAIR MARKET VALUE CAN BE READILY ASCERTAINED.

(b) DOES NOT INCLUDE:

(i) INDIRECT BENEFITS THAT ARE SPECULATIVE OR ANTICIPATORY.

(ii) THE PROMISE TO EMPLOY ANY PERSON.

(iii) THE RECEIPT OF TAX REVENUE.

2.

"PUBLIC PURPOSE":

(a) MEANS AN ACTIVITY THAT IS DIRECTLY RELATED TO A FUNCTION OF GOVERNMENT AND FOR WHICH THE PRIMARY BENEFICIARY IS THE PUBLIC AS A WHOLE AND NOT A PRIVATE ENTITY.

-21- Senate Amendments to H.B.

2471 (b) DOES NOT INCLUDE PROVIDING AID BY SUBSIDY, GRANT, LOAN OR OTHERWISE TO PRIVATE BUSINESSES, INDIVIDUALS OR ENTITIES FOR THE PURPOSES OF ECONOMIC DEVELOPMENT.

Sec.

9.

Repeal Section 41-1507, Arizona Revised Statutes, is repealed.

Sec.

TitleEliminating 41,rules chapterthat 10,are articleantiquated, 1,redundant Arizonaor Revisedotherwise Statutes,no islonger amendednecessary byfor addingthe aoperation newof sectionstate 41-1507,government. to read:

41-1507.

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