Second Regular Session H.B. 2471
PROPOSED
SENATE AMENDMENTS TO H.B. 2471
(Reference to the proposed Hoffman s/e amendment dated 3/19/24; 4:23 p.m.)
Page 5, strike line 9, insert:
"7. Except as provided in section 41-1504, the Arizona commerce authority."
Renumber to conform
Page 6, strike lines 6 through 10
Reletter to conform
Page 8, after line 30, insert:
"Sec. 6. Repeal
Section 41-1501, Arizona Revised Statutes, is repealed.
Sec. 7. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding a new section 41-1501, to read:
41-1501. Definitions
In this chapter, unless the context otherwise requires:
1. "Board" means the board of directors of the office.
2. "Director" means the director of the office.
3. "Office" means the office of economic opportunity."
Renumber to conform
Page 9, line 3, strike "Arizona commerce authority" insert "Office of economic opportunity"
Strike line 6
Line 7, strike "economic OPPORTUNITY." insert "A. Under this chapter,"; strike "authority" insert "office"
Line 12, strike "authority" insert "office"
Page 10, strike lines 25 and 26, insert:
"(b) One member who is an economist and who is appointed by the speaker of the house of representatives."
Page 11, strike lines 10 and 11, insert:
"1. The member who is an economist."
Page 13, lines 8 and 9, strike "chief executive officer" insert "director"
Page 14, lines 2, 7 and 10, strike "authority" insert "office"
Line 12, strike "authority's" insert "office's"
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Page 15, strike lines 8 through 22, insert:
"Sec. 9. Repeal
Section 41-1503, Arizona Revised Statutes, is repealed."
Renumber to conform
Line 26, strike "authority" insert "office"
Page 16, line 4, strike the first and second "authority" insert "office"
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Line 24, strike "chief executive officer" insert "director"
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Line 18, strike "authority" insert "office"; strike "chief executive officer" insert "director"
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Line 16, strike "chief executive officer" insert "director"
Line 18, strike "the authority" insert "this chapter"; strike "The"
Page 19, strike lines 23 through 30
Page 20, strike lines 1 and 2
Line 10, strike "authority's" insert "office's"
Lines 17, 19, 21, 22, 24, 27, 28 and 30, strike "authority" insert "office"
Page 21, line 1, strike "authority" insert "office"
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Page 22, between lines 3 and 4, insert:
"Sec. 12. Section 41-1506, Arizona Revised Statutes, is amended to read:
41-1506. Office of economic opportunity fund
A. The Arizona commerce authority office of economic opportunity fund is established consisting of:
1. Withholding tax revenues allocated to the fund from the job creation withholdings clearing account pursuant to section 43-409, subsection B, paragraph 1. Monies credited to the fund may be deposited in the state treasury or in a bank or other depository approved by the board of directors pursuant to section 41-1504, subsection D, paragraph 5.
2. Monies deposited pursuant to section 18-603.
B. The chief executive officer director shall administer the fund. On notice from the chief executive officer director, the state treasurer shall invest and divest any monies in the fund deposited in the state treasury as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
C. The chief executive officer director shall use the monies in the fund as follows:
1. Monies described in subsection A, paragraph 1 of this section shall be used exclusively for the purposes of this chapter without further legislative authorization.
2. Monies described in subsection A, paragraph 2 of this section shall be used exclusively for the purposes of title 18, chapter 6."
Renumber to conform
Page 22, line 9, strike "authority" insert "office"
Between lines 12 and 13, insert:
"Sec. 15. Section 41-1507.01, Arizona Revised Statutes, is amended to read:
41-1507.01. Certification of basic research payments to a university
A. For taxable years beginning from and after December 31, 2014, before a taxpayer can apply to the department of revenue for certification of additional income tax credits for increased research activities involving basic research payments to a university under section 43-1074.01, subsection A, paragraph 1, subdivision (c) or section 43-1168, subsection A, paragraph 1, subdivision (d), a taxpayer shall obtain certification from the authority that the basic research payments meet the requirements of this section. The taxpayer shall apply to the authority office for certification of the basic research payments at a time, on a form and in a manner prescribed by the authority office.
B. The authority office shall process and evaluate each application for certification of basic research payments to a university up to an amount that corresponds to ten million dollars $10,000,000 per calendar year in aggregate combined projected additional tax credits under section 43-1074.01, subsection A, paragraph 1, subdivision (c) and section 43-1168, subsection A, paragraph 1, subdivision (d). The applicant shall identify the amount of projected additional tax credits corresponding to the basic research payments to a university sought to be certified. The amount of additional tax credits a taxpayer may claim following certification by the authority must be established by the department of revenue under section 43-1074.01, subsection A, paragraph 1, subdivision (c) or section 43-1168, subsection A, paragraph 1, subdivision (d). The authority office shall process and evaluate applications for certification under this section through a competitive process pursuant to subsection C of this section that may include third-party peer review. An application for certification must include:
1. The taxpayer's name, address and taxpayer identification number and a telephone number and e-mail address of a person responsible for the application.
2. A general description of the taxpayer's business and the research activities contemplated by the taxpayer.
3. The amount of the additional income tax credit the taxpayer will be requesting from the department of revenue.
4. Any other information required by the authority office.
C. The authority office shall establish the time and manner of the competitive process used in issuing certifications. In determining which applications must be issued certifications, the authority office or its designee shall evaluate among all applicants for certification of basic research payments, the relative impact of the research activities involving payments to a university from the standpoint of furthering one or more of the following considerations:
1. Expanding cluster industries. For purposes of this paragraph, "cluster industries" means concentrations of firms across several industries that share common economic foundation needs.
2. Diversifying and strengthening this state's economy.
3. Advancing technological commercialization.
4. Enhancing long-term quality job creation.
5. Aligning research with university strategic plans.
D. Following review of each application pursuant to subsection C of this section, the authority office shall either:
1. Issue the applicant a letter certifying the basic research payments.
2. Notify the applicant of the denial of the certification with an explanation of the basis for the denial.
E. The authority office shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.
F. Any information gathered from a business for the purposes of this section is confidential and may not be disclosed to the public except that the information must be transmitted to the department of revenue."
Renumber to conform
Page 23, line 9, strike "Arizona commerce authority" insert "office of economic opportunity"
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Between lines 22 and 23, insert:
"Sec. 18. Repeal
Section 41-3024.31, Arizona Revised Statutes, is repealed.
Sec. 19. Section 41-5302, Arizona Revised Statutes, is amended to read:
41-5302. Office of economic opportunity; funds
A. The office of economic opportunity is established.
B. The director is responsible for the direction, operation and control of the office.
C. The governor shall appoint the director of the office pursuant to section 38-211 to serve at the pleasure of the governor from a list of three qualified persons submitted jointly to the governor by the president of the senate and the speaker of the house of representatives. the director serves at the pleasure of the board of directors of the office pursuant to section 41-1502 under the terms of a performance-based contract.
D. The office of economic opportunity operations fund is established consisting of monies deposited pursuant to sections 44-1843, 44-1861, 44-1892, 44-3324 and 44-3325 and as otherwise provided by law. The office shall administer the fund. Monies in the fund are continuously appropriated. Monies in the fund may be used in the furtherance of the mission of the office and related economic development interests.
E. The economic development fund is established consisting of monies received from the Arizona industrial development authority and the Arizona finance authority as otherwise provided by law. The office shall administer the fund.
Sec. 20. Section 41-5303, Arizona Revised Statutes, is amended to read:
41-5303. Powers and duties
A. The director shall:
1. Monitor this state's tax and regulatory competitiveness by benchmarking this state against competitor states and municipalities, including implementing a systematic data collection and analysis process to evaluate tax and regulatory costs to businesses imposed by this state and municipalities of this state in relation to other states and municipalities.
2. Serve as this state's workforce planning coordinator, provide staffing support to the workforce Arizona council, provide stewardship of the state workforce data evaluation system, provide economic and demographic research and analysis, including constitutionally required population estimates, provide employment and unemployment estimates and develop labor market information for the development of the state workforce strategy.
3. Provide office and meeting space, administrative support and analytical support to the Arizona finance authority and coordinate with the Arizona finance authority director to incorporate finance market intelligence in economic development strategy and policy recommendations.
4. Develop data-informed policy and regulatory reform recommendations and provide assistance with state tax and regulatory matters, including the development and analysis of proposed rules and regulations and the projected cost on employers relating to those rules and regulations.
5. Provide analytical support to the Arizona commerce authority in its pursuant to chapter 10 of this title regarding business recruitment, growth and retention strategies.
6. Provide analytical support to the Arizona commerce authority, the Arizona-Mexico commission in the governor's office, and the office of tourism in their and pursuant to chapter 10 of this title regarding state marketing strategies.
7. manage, administer and supervise the activities of the office pursuant to chapter 10 of this title.
8. negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the office or to carry out or accomplish the purposes of chapter 10 of this title.
B. The director may:
1. Contract and incur obligations that are reasonably necessary or desirable within the general scope of the office's activities and operations to enable the office to adequately perform its duties.
2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the office.
3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter."
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Page 55, strike lines 3 through 9, insert:
"Sec. 33. Retroactivity
Section 18 of this act applies retroactively to from and after July 1, 2024.
Sec. 34. Conforming legislation
The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-seventh legislature, first regular session."
Amend title to conform