ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: IT DP 7-1-1-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2751: Arizona competes fund; repeal

Sponsor: Representative Rivero, LD 27

Caucus & COW

Overview

Subjects the Arizona Commerce Authority (ACA) Chief Executive Officer's (Officer) responsibility of using Arizona Competes Fund (Fund) monies to legislative appropriations. Continues the Arizona Competes Program (Program) indefinitely by repealing the Program's termination of July 1, 2026.

History

Laws 2011, 2nd S.S., Chapter 1, established the Arizona Competes Fund (Fund), consisting of withholding tax revenues allocated to the Fund from the job creation withholdings clearing account, any other amounts dedicated to the Fund by law, gifts, grants and other donations received for that purpose and any available monies received from the United States government, including monies from the American Recovery and Reinvestment Act of 2009.

The Officer must administer the Fund. On notice from the Officer, the State Treasurer must invest and divest any Fund monies in the state treasury and monies earned from investment must be credited to the Fund.  Monies in the fund are exempt lapsing. The Officer must use Fund monies exclusively for the purposes of this article (A.R.S. § 41-1545.01).

The Officer may negotiate the award of Fund monies, to be paid by grant for: 1) attracting, expanding or retaining Arizona basic enterprises, that achieve the performance and qualification targets developed and that enter into an agreement with the Officer; and 2) supporting and advancing programs and projects for microenterprises, rural businesses, small businesses and business development that enhance economic development (A.R.S. § 41-1545.02).

The Program terminates on July 1, 2026 (A.R.S. § 41-1542.05).

Provisions

1.   Subjects to legislative appropriations the Officer's requirement of using Fund monies exclusively for the prescribed purposes. (Sec. 1)

2.   Continues the Program indefinitely by repealing the Program's termination of July 1, 2026. (Sec. 2)

3.   Makes the provision relating to the Program retroactive to July 1, 2026. (Sec. 3)

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7.   Initials LM/IC                 HB 2751

8.   2/5/2026    Page 0 Caucus & COW

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