ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: COM DP 7-2-1-0

HB 2209: economic opportunity; industrial development authority

Sponsor: Representative Wilmeth, LD 2

House Engrossed

Overview

Continues the Arizona Office of Economic Opportunity (Office) for four years and makes clarifications to the Arizona Finance Authority (AFA) board membership and duties.

History

Arizona Office of Economic Opportunity

Laws 2016, Chapter 372, established the Office to: 1) monitor the state's tax and regulatory competitiveness; 2) serve as the state's workforce planning coordinator and provide economic and demographic research and analysis; 3) provide administrative support and analytic support to the Arizona Finance Authority; 4) analyze state and local regulatory costs to businesses; and 5) provide analytical support to the Arizona Commerce Authority. The director of the Office is appointed by the Governor and is responsible for the direction, operation and control of the Office (A.R.S. § 41-5302).

Established within the Office is the AFA which is statutorily required to establish the Arizona Industrial Development Authority (AIDA) and serve as the board for the AIDA. The AFA is governed by a board of directors, consisting of five members who are appointed by the Governor (A.R.S. §§ 41-5353, 41-5356).

Sunset Review Process

The sunset review process provides a system for the Legislature to evaluate the need to continue the existence of state agencies which are reviewed by a legislative committee of reference (COR). The COR is required to hold a public hearing, receive testimony from agency officials and the public and consider certain sunset factors in determining whether to recommend continuing, consolidating or terminating the agency (A.R.S 41-2954).

The Senate Commerce and House Commerce COR held a public meeting on January 10, 2023 and recommended that the Legislature continue the Office for eight years. The Office terminates on July 1, 2023, unless continued by the Legislature (A.R.S. § 41-3023.15).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteContinues, retroactively to July 1, 2023, the Office of Economic Opportunity until July 1, 2027. (Sec. 1, 2, 9)

2.   Repeals the Office on January 1, 2028 under certain conditions. (Sec. 2)

3.   Removes the authority of the director of the Office to provide staffing support to an industrial development authority. (Sec. 3)

4.   Defines Arizona Industrial Development Authority as the industrial development authority established by the AFA. (Sec. 4)

5.   Specifies that AFA board of directors (Board) members who are reappointed are excluded from the requirement to submit fingerprints for state and federal criminal background checks. (Sec. 5)

6.   Allows current members of the Board who have yet to be reappointed or replaced after term expiration to continue to serve until reappointment or replacement. (Sec. 5)

7.   Removes the prohibition for the Board to meet in executive session by audioconference or videoconference. (Sec. 5)

8.   Specifies that Board members are prohibited from having direct or indirect personal financial interests in any AFA, AIDA or other project. (Sec. 5)

9.   Includes a purpose statement. (Sec. 8)

10.  Makes clarifying and technical changes. (Sec. 3, 4, 6, 7)

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14.                    HB 2209

15.  Initials PRB           Page 0 House Engrossed

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