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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: ATT DPA/SE 7-0-3-0 | Third Read 16-14-0-0House: TI DPA/SE 4-3-0-0 |
SB 1826: advanced air mobility; appropriation
S/E: office of defense innovation; appropriation
Sponsor: Senator Farnsworth, LD 10
Caucus & COW
Summary of Strike-Everything Amendment to SB 1826
Overview
Appropriates $2,000,000 from the Advanced Air Mobility Fund (Fund) in FY 2027 to the Office of Defense Innovation (Office) for the purpose of advanced air mobility (AAM). Requires the Office to enter a public-private partnership (PPP) with a qualified public of private entity to advance this state's defense, aerospace, dual use and national security innovation ecosystem.
History
Laws 2025, Chapter 248 established the Fund consisting of monies appropriated by the legislature and any nonfederal gifts, grants, donations or other monies received by the State Treasurer from any public or private source for transportation projects. Fund monies must be used to purchase AAM vehicles capable of carrying passengers or cargo for testing and demonstration purposes of the ability to use the AAM vehicles and construct vertiports. Before any expenditure is made from the Fund, the State Treasurer and the Arizona Department of Transportation must submit an expenditure plan for review to the Joint Committee on Capital Review (A.R.S. § 28-8604).
Laws 2025, Chapter 236 established the Office under the Arizona Commerce Authority.
Statute prescribes duties that the Office may use, including:
1) acting as a liaison between this state, the United States Department of Defense (DOD) and national security organizations, including federal and state agencies and law enforcement and industries;
2) identifying and pursuing opportunities to increase the amount of federal funding to foster the development of products, services and technologies that support the DOD in this state;
3) supporting any ongoing DOD industry development mission directed at this state; and
4) supporting Arizona-based companies that seek federal defense contracts (A.R.S. § 41-1561).
Provisions
1. Appropriates $2,000,000 from the Fund in FY 2027 to the Office for the purpose of advanced AAM. (Sec. 2)
2. Requires the Office to enter a PPP with a qualified public of private entity to advance this state's defense, aerospace, dual use and national security innovation ecosystem. (Sec. 1)
3. Directs the Office to 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. (Sec. 1)
4. Removes the possibility that the Office may act as a liaison between this state and law enforcement. (Sec. 1)
5. Adds that the Office may enhance or expand any ongoing United States Department of Defense (DOD) missions within this state, rather than any ongoing DOD industry development mission directed at this state. (Sec. 1)
6. Allows the Office to advocate to any relevant constituencies for, rather than advance, Arizona's economic interests related to the DOD's missions and aerospace and defense industries. (Sec. 1)
7. Stipulates that the Office may develop and implement a reoccurring strategic plan to enhance Arizona's competitiveness in national security industries. (Sec. 1)
8. Permits the Office to identify and support dual use technology. (Sec. 1)
9. Allows the Office to collaborate to enhance workforce development that prepares entrepreneurs and workers, rather than intrapreneurs, to support defense and national security industries. (Sec. 1)
10. Outlines additional options the Office may do, including:
a. developing, in coordination with public and private partners and consistent with applicable state and federal law, a proving ground for autonomous systems and AAM to enable testing, validation and commercialization activities;
b. entering into agreements, including intergovernmental agreements and memoranda of understanding, as necessary for implementation;
c. applying for, accepting and spending grants, donations, aid or other monies received from the federal government or any agency of the federal government for any AAM purpose; and
d. on behalf of this state or in coordination with any appropriate state agency, applying for and hold Federal Aviation Administration certificates, waivers or authorizations necessary for implementation. (Sec. 1)
11. Restricts the Office from exercising regulatory authority over any public or private entity. (Sec. 1)
12. Tasks the Office with submitting by September 1, 2029, a comprehensive report to the Governor, the Senate President and the Speaker of the House of Representatives. (Sec. 1)
13. Lists the Office's reporting requirements. (Sec. 1)
14. Defines pertinent terms. (Sec. 1)
15. Makes conforming and technical changes. (Sec. 1)
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19. Initials LM SB 1826
20. 3/11/2026 Page 0 Caucus & COW
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