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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature First Regular Session |
House: APPROP DP 10-5-0-0 |
HB 2813: commerce; 2023-2024
Sponsor: Representative Livingston, LD 28
Caucus & COW
Overview
Contains provisions relating to commerce needed to implement the FY 2024 budget.
History
The Arizona Commerce Authority's (ACA) mission is to provide private sector leadership in growing and diversifying Arizona's economy, creating high quality employment in Arizona through expansion, attraction and retention of businesses and marketing Arizona for the purpose of expansion, attraction and retention of businesses (A.R.S. § 41-1502).
Pursuant to A.R.S. § 41-1545.02, the ACA Chief Executive Officer may negotiate the award of monies from the Arizona Competes Fund for the purposes of: 1) attracting, expanding or retaining Arizona basic enterprises with preferences given to job training and infrastructure activities that create private sector jobs; and 2) supporting and advancing programs and projects for microenterprises, rural businesses, small businesses and business development that enhance economic development.
The Arizona Competes Fund consists of, in part, an annual deposit of $5,500,000 in income tax withholding revenues (A.R.S. § 41-1545.01). According to JLBC, the fund has a year-end balance (FY 2023) of approximately $105,000,000.
The Broadband Equity, Access and Deployment Program appropriates $42.45 billion for states to utilize for broadband deployment, mapping and adoption programs. For Program eligibility, an entity must provide matching funds of not less than 25% of project costs.
The Water Infrastructure and Commerce Grant Fund provides grants to eligible entities for contracting for the design and construction of water infrastructure at the eligible entity's location. A public service corporation that provides water service that acts on behalf of an employer with more than 250 employees that is located in a county with a population between 400,000 and 1,000,000 persons are eligible for grants. The ACA, which administers the fund, is responsible for establishing requirements and criteria by which grants are awarded, which must include at least the following:
1) grants may only be distributed to eligible applicants for new water infrastructure projects;
2) grants must be used for projects that create new jobs;
3) projects must begin after January 1, 2022 to qualify for a grant; and
4) grants must be allocated and distributed by December 31, 2024.
Provisions
Arizona Competes Fund (Sec. 1)
1.
Reduces the annual deposit in income tax
withholding revenues to the Arizona Competes Fund from $5,500,000 to $500,000.
Rural Broadband Accelerate Match Fund (Sec. 2)
2. Establishes, as session law, the Rural Broadband Accelerated Match Fund consisting of legislative appropriations.
3. Directs the ACA to administer the fund.
4. Stipulates fund monies are continuously appropriated and exempt for lapsing.
5. Requires, in FY 2024, the ACA to use fund monies to assist political subdivisions to meet the matching requirement for the federal Broadband Equity, Access and Deployment program.
6. Instructs the ACA to distribute fund monies as follows:
a) 25% to counties with a population between 100,000 and 1,000,000 persons;
b) 25% to counties with a population of less than 100,000 persons;
c) 25% to municipalities with a population of 10,000 persons or more, however municipalities that are partially or entirely located in an urbanized area and that have a population of more than 1,000,000 persons are not eligible for funding;
d) 25% to municipalities with a population of less than 10,000 persons; and
e) up to 1%, in FY 2024, for administration.
7. Requires the ACA, by September 1 of each year until all fund monies have been expended, to submit a detailed report on the use of fund monies for the previous fiscal year to the Legislature, Executive and JLBC.
8. Specifies the report must include:
a) the entities that received fund monies and the amount received;
b) a description of the projects funded;
c) the federal match rate on each project;
d) the status of each project;
e) the price of services; and
f) an assessment of the total impact of each project.
9. Instructs the ACA to give preference to applicants that demonstrate either:
a) the percentage of matching monies provided by the applicant; or
b) the extent that the applicant will partner with other entities to deliver the project.
Water Infrastructure and Commerce Grant Fund (Sec. 3)
10. Requires, as session law, the ACA to award grant fund monies to eligible entities for projects beginning after January 1, 2023.
11. Requires, as session law, the ACA to allocate and distribute grant fund monies by December 31, 2025.
12. Applies the grant fund provisions retroactively to January 1, 2023.
Microbusiness Loan Program (Sec. 4)
13. Requires, as session law, the Office of Economic Opportunity (OEO) to establish the Microbusiness Loan Program to provide funding to eligible entities that provide loans to microbusinesses in Arizona.
14. Instructs the OEO, in FY 2024, to use monies in the Microbusiness Loan Fund for the Microbusiness Loan Program.
15. Establishes, as session law, the Microbusiness Loan Fund consisting of legislative appropriations.
16. Requires the OEO to administer the fund.
17. Stipulates fund monies are continuously appropriated and exempt from lapsing.
18. Requires the OEO to publicly list and solicit program applications for the participation and funding of eligible entities.
19. Outlines the eligibility criteria for an entity to receive funding from the program.
20. Specifies a microbusiness loan provided by an eligible entity may be used for:
a) operation of the microbusiness;
b) working capital;
c) acquisition or improvement of real property;
d) acquisition of machinery and equipment; or
e) refinancing of debt obligations.
21. Instructs the OEO to market and advertise the program to microbusinesses that are unable to access traditional funding sources and offer information on other similar programs.
22. Allows the OEO to use up to 1% of the monies in the Microbusiness Loan Fund for marketing and advertising the program.
23. Outlines applicable requirements for each loan disbursed by an eligible entity using monies from the program.
24. Requires an eligible entity to certify loan compliance with the OEO.
25. Permits an eligible entity to charge application, commitment and loan guarantee fees and provides restrictions to fees charged.
26. Instructs the OEO, by February 1, 2024, to submit a report to the Legislature, Executive and JLBC on:
a) the number of microfinance lenders;
b) the availability of microbusiness credit; and
c) any recommendations for increasing the availability of credit to microbusinesses.
27. Instructs the OEO, by July 31, 2024, to submit a report to the Legislature, Executive and JLBC that contains all of the following:
a) a list of the eligible entities that have received funding;
b) the number of microbusiness loans made by each eligible entity using monies from the program and the type of business each loan recipient operates;
c) the average principal amount of microbusiness loans made by each eligible entity;
d) the county and zip code of each eligible entity;
e) the county and zip code of the recipients of each loan made to an eligible entity;
f) the current outstanding principal of microbusiness loans made by eligible entities;
g) the total amount of loan losses for microbusiness loans made by eligible entities;
h) the total amount of principal repaid to eligible entities for microbusiness loans; and
i) the total amount of interest earned, and fees charged by eligible entities for microbusiness loans.
28. Prevents the OEO from allocating more than $2,000,000 of fund monies to an eligible entity.
29. Requires the OEO to allocate program funds so that there is a participating eligible entity from at least two different counties.
30. Defines eligible entity as a community development financial institution or a nonprofit lender in this state with at least two years of lending experience.
31. Defines community development financial institution as an entity that is currently certified as a Community Development Financial Institution under federal law.
32. Defines microbusiness as a business that is located in this state, that is independently owned and operated and that employs five or fewer people.
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36. HB 2813
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