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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
youth entrepreneurship; appropriation; pilot program
Purpose
Appropriates $500,000 from the Arizona Competes Fund (Fund) in FY 2020 to the Arizona Commerce Authority (ACA) to fund the Youth Entrepreneurship Pilot Program (Program).
Background
The ACA was established to promote economic, community and workforce development. The ACA is required to: 1) determine and collect application fees, registry fees and security deposits; 2) establish and supervise the operations of offices in other states and foreign countries for the purpose of expanding direct investment and export trade opportunities; 3) educate entrepreneurs regarding the authorizations needed to operate in Arizona; 4) post annual reports online; 5) administer Fund grants; and 6) disclose requested information to the Office of Economic Opportunity (A.R.S. § 41-1504). The ACA has a FY 2019 budget of $29,907,300 (JLBC).
The Fund is administered by the ACA and Fund grants may be awarded for: 1) attracting, expanding or retaining Arizona basic enterprises; 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). During FY 2018 the ACA awarded 14 grants from the Fund representing a total commitment of $17,300,000 (Fund Annual Report).
S.B. 1424 appropriates $500,000 from the Fund in FY 2020 to the ACA.
Provisions
1. Requires the ACA to establish the Program to provide persons who are 16 through 23 years of age with:
a) a community-based entrepreneurial education;
b) increased economic knowledge and entrepreneurial skills;
c) mentoring from local small business owners and professionals;
d) increased opportunities for disconnected youths to meaningfully participate in community economic activities;
e) opportunities for collaboration and innovation; and
f) an appreciation for the benefits and challenges of owning a successful business enterprise, including a successful microenterprise.
2. Appropriates $500,000 from the Fund in FY 2020 to the ACA to operate the Program.
3. Allows the ACA to coordinate with local small business leaders to organize and conduct educational workshops, seminars and discussions on alternative career pathways for youths.
4. Requires the ACA to include in the Program a component to serve youths in counties with a population of less than 750,000 persons.
5. Requires the ACA to submit a report containing a detailed description of the number and types of activities held, the number of youths served and the outcomes achieved by the Program to the Governor, the President of the Senate and the Speaker of the House of Representatives by October 1 of each year.
6. Requires the ACA to provide a copy of the report to the Secretary of State.
7. Allows the ACA to use federal monies, legislative appropriations, public and private grants and private donations to operate the Program.
8. Requires the ACA to allocate:
a) $50,000 to award seed capital for business start-up costs to youths who are residents of counties with a population of less than 750,000 persons, who have successfully completed one year in the Program and who present a meritorious new business enterprise proposal to the ACA; and
b) $50,000 to award seed capital for business start-up costs to youths who are residents of counties with a population of 750,000 or more persons, who have successfully completed one year in a Program and who present a meritorious new business enterprise proposal to the ACA.
9. Exempts the appropriation from lapsing.
10. Repeals the Program's enacting session law on July 1, 2025.
11. Defines disconnected youths and microenterprise.
12. Becomes effective on the general effective date.
Amendments Adopted by Appropriations Committee
· Decreases the appropriation from the Fund in FY 2020 to the ACA to $500,000.
Senate Action
COM 2/14/19 DP 6-0-2
APPROP 2/26/19 DPA 9-0-0
Prepared by Senate Research
February 27, 2019
MG/AA/gs