ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: COM DPA 9-0-0-1

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HB 2282: small business assistance grants

Sponsor:  Representative Lieberman, LD 28

Committee on Appropriations

Overview

Creates the Small Business Assistance Grant Fund (Fund) to provide grants to small business that closed due to the COVID-19 Pandemic.

History

The Crisis Contingency and Safety Net Fund (CCSNF) consists of legislative appropriations, public or private gifts, grants and donation.  The fund is administered by the Governor who may only spend fund monies for the following forms of economic assistance during a state of emergency: 1) housing assistance; 2) services for homeless persons; 3) economic assistance to small businesses with less than 50 employees, non-profit organizations, and health care providers; and 4) monies for food bank operations (A.R.S. § 41-110).

According to JLBC, the legislature appropriated $50,000,000 from the state GF to the CCSNCF in FY 2020. As of December 2020, the Executive has allocated a total of $43,945,000 from the fund (Baseline FY 2022).

Provisions

Small Business Assistance Grant Fund (Sec. 1)

1. Establishes the Fund to provide grants to small business that closed due to the COVID-19 Pandemic.

a) Specifies the Fund is administered by the Arizona Commerce Authority (ACA) and monies are continuously appropriated.

2. Allows the following individuals and entities to apply to the ACA for a grant:

a) Sole proprietor;

b) Independent contractor;

c) self-employed who regularly carries on any trade or business;

d) tribal small business; and

e) cooperative and employee owned business.

3. Directs the ACA to award grants in the amount of $5,000 and to allocate at least 30% of Fund monies to small businesses located in counties with a population of less than 900,000.

4. Requires small businesses to apply prior to an unspecified date and outlines the contents of the application.

5. Instructs the ACA to review the applications prior to an unspecified date and specifies priority of grant awards.

6. Permits the ACA to extend the application deadline to allow additional business to apply if Fund monies remain after the date of the initial application deadline.

7. Outlines entities not eligible for a grant.

8. Exempts small business grants from statutory requirements relating to solicitation and award of grants.

9. Defines small business.

Appropriation (Sec. 4)

10. Appropriates $20 million from the CCSNF in FY 2021-22 to the Fund to provide financial relief to small businesses that closed as a result of the COVID-19 pandemic so that those small businesses can reopen.

11. Exempts monies from lapsing of appropriation. 

Miscellaneous

12. Exempts the ACA from rule making for one year. (Sec. 2)

13. Contains a legislative intent clause. (Sec. 3)

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17.                   HB 2282

18. Initials PRB           Page 0 Appropriations

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