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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
Arizona competes fund; repeal
Purpose
Extends the Arizona Competes Fund and grant program for four years, until July 1, 2030, and specifies that the Arizona Competes Fund is subject to legislative appropriation.
Background
Laws 2011, Second Special Session, Chapter 1 established the Arizona Competes Fund, which is administered by the Chief Executive Officer of the Arizona Commerce Authority (CEO). The CEO may award grants from the Arizona Competes Fund to: 1) attract, expand or retain Arizona basic enterprises that achieve performance and qualification targets and enter into an agreement with the CEO; and 2) advance and support projects for microenterprises, rural businesses, small businesses and business development that enhance economic development.
The Arizona Competes Fund consists of tax revenues allocated from the job creation withholdings clearing account, gifts, grants and donations, available federal monies and other amounts dedicated by law. The CEO must use Arizona Competes Fund monies exclusively for the purposes prescribed by statute. The Arizona Competes Fund and grant program terminate on July 1, 2026 (A.R.S. Title 41, Chapter 10, Article 5).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Extends the Arizona Competes Fund and grant program for four years, until July 1, 2030, retroactive to July 1, 2026.
2. Specifies that the Arizona Competes Fund is subject to legislative appropriation.
3. Becomes effective on the general effective date, with a retroactive provision as noted.
House Action
IT 2/11/26 DP 7-1-1-1
3rd Read 2/25/26 38-16-6
Prepared by Senate Research
March 10, 2026
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