41-1561. Office of defense innovation; powers and duties; annual report; definitions

A. The office of defense innovation is established within the authority.

B. The office shall enter into a contract with a qualified public or private entity to advance this state's defense, aerospace, dual use technology and national security innovation ecosystem.  The office shall engage with and coordinate with private industry, defense contractors, small businesses, institutions of higher education, research institutions, military installations and private stakeholders to implement the duties of the office.

C. The office may:

1. Act as a liaison between this state, the United States department of defense and national security organizations, including federal and state agencies and industries that support the purposes prescribed in this section.

2. Identify and pursue, as appropriate, opportunities to increase the amount of federal funding to foster the development of products, services and technologies that support the United States department of defense in this state.

3. Support, enhance or expand any ongoing United States department of defense missions within the state.

4. Support Arizona-based companies that seek federal defense contracts.

5. Advocate to any relevant constituencies for Arizona's economic interests that are related to the United States department of defense's missions and aerospace and defense industries.

6. Develop and implement a reoccurring strategic plan to enhance Arizona's competitiveness in defense-related and national security industries.

7. Identify and support emerging technology and dual use technology, including commercialization support services to accelerate technology development.

8. Collaborate with the Arizona board of regents and universities and research institutions that seek to increase the amount of defense research and development funding for applied research, advance prototyping of critical defense-related products and technologies and support rapid technology transfer and transition capabilities.

9. Collaborate to enhance workforce development that prepares innovators, entrepreneurs and workers to support defense and national security industries.

10. Develop, in coordination with public and private partners and consistent with applicable state and federal law, a proving ground in this state for autonomous systems and advanced air mobility to enable testing, validation and commercialization activities.

11. Enter into agreements, including intergovernmental agreements and memoranda of understanding, as necessary to implement this section.

12. Apply for, accept and spend grants, donations, aid or other monies received from the federal government or any agency of the federal government for any advanced air mobility purpose.

13. On behalf of this state or in coordination with any appropriate state agency, apply for and hold federal aviation administration certificates, waivers or authorizations necessary to implement this section.

14. Coordinate with the governor and the legislature on the office's activities, achievements and recommendations.

D. This section does not allow the office to exercise regulatory authority over any public or private entity.

E. On or before December 31, 2026 and each year thereafter, the office shall submit a report regarding the office's activities and recommendations to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of the report to the secretary of state.

F. On or before September 1, 2029, the office shall submit to the governor, the president of the senate and the speaker of the house of representatives a comprehensive report that includes all of the following:

1. A summary of the office's activities and accomplishments.

2. An assessment of the economic and national security impact of the office.

3. Recommendations regarding the continuation, modification or termination of the office.

G. For the purposes of this section:

1. "Advanced air mobility" has the same meaning prescribed in section 28-8601.

2. "Dual use technology" means technology that has both civilian and defense or national security applications.

3. "Qualified public or private entity" means an entity that demonstrates experience, capacity and credibility in defense and national security innovation and that has the ability to do all of the following:

(a) Support federal defense and national security missions, including engaging with the United States department of defense and related agencies.

(b) Manage complex programs that involve coordination among public and private stakeholders, including industry, academia and government.

(c) Facilitate technology development, testing, validation or transition activities in support of defense or dual use technology applications.

(d) Operate in environments that may require specialized compliance, credentialing or security conditions and support defense-related contracting or federal program requirements.