ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: NREW DP 5-2-0-0 | APPROP DP 7-3-0-0 | 3^rd Read 16-11-3-0

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SB1223: water infrastructure; commerce grant fund

Sponsor: Senator Shope, LD 16

Committee on Natural Resources, Energy & Water

Overview

Extends the start date for projects to be eligible for grants from the Water Infrastructure and Commerce Grant Fund and extends the date by which grants from this fund must be allocated and distributed. Appropriates $8,000,000 from the state General Fund to this fund in fiscal year 2024.

History

The Water Infrastructure and Commerce Grant Fund was created as part of the FY 2023 budget to provide grants to eligible entities for contracting to design and construct new water infrastructure (Laws 2022, Chapter 312). Employers with more than 250 employees located in Pinal County and private water utilities acting on the behalf of these employer are eligible for grants. The Arizona Commerce Authority (ACA), which administers this 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.

Additionally, applicants may receive a more favorable consideration for collaborating or cooperating with other community members and entities. Applicants must certify that they are eligible to receive grant funding and provide a description of the project and services requested and why the project and services are needed (A.R.S. § 41-1510). The ACA is in the process of adopting rules to govern awarding grants from this fund.

The Water Infrastructure and Commerce Grant Fund may receive revenues from legislative appropriations, federal monies and private donations. In FY 2023, it was appropriated $15 million from the state General Fund (Laws 2022, Chapter 313). The Water Infrastructure and Commerce Grant Fund's monies are continuously appropriated and exempt from lapsing. The ACA may retain up to 1% of fund monies annually for administration and must submit an annual report of its expenditures from the fund by project and an expenditure plan for all remaining monies in the project by December 15 (A.R.S. § 41-1510).

Provisions

1. Extends the date after which projects must begin to qualify for grants from the Water Infrastructure and Commerce Grant Fund from January 1, 2022 to January 1, 2023. (Sec. 1)

2. Extends the date by which grants from the Water Infrastructure and Commerce Grant Fund must be allocated and distributed from December 31, 2024 to December 31, 2025. (Sec. 1)

3. Appropriates $8,000,000 from the state General Fund to the Water Infrastructure and Commerce Grant Fund in fiscal year 2024 and exempts this appropriation from lapsing. (Sec. 2)

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7.                   SB 1223

8. Initials PAB/AH     Page 0 Natural Resources, Energy & Water

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