REFERENCE TITLE: Asia trade offices; repeal.

State of Arizona

House of Representatives

Fifty-sixth Legislature

Second Regular Session

2024

HB 2387

Introduced by

Representatives Kolodin: Chaplik, Gillette, Jones, Parker B

An Act

amending Laws 2023, chapter 133, section 19; appropriating monies; relating to the asia trade offices.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Laws 2023, chapter 133, section 19 is amended to read:

Sec. 19. ARIZONA COMMERCE AUTHORITY

2023-24

Operating lump sum appropriation     $ 13,500,000

Arizona competes fund deposit             500,000

Asia trade offices                        750,000

Asia-Pacific trade office                750,000*

Canada trade office                      750,000*

Economic development marketing

 and attraction                       1,000,000

Economic transition resources           9,000,000

Frankfurt, Germany trade office           500,000

Israel trade office                       300,000

Mexico trade offices                  500,000

Rural broadband accelerated match

 fund deposit                        23,600,000

Trade office funding                    2,000,000

Water infrastructure and commerce

 grant fund deposit                 7,000,000

Wearable technology research          2,500,000

Total appropriation — Arizona commerce                   

authority               $ 62,650,000 $ 61,900,000

Fund sources:

State general fund      $ 62,650,000 $ 61,900,000

Pursuant to section 43-409, Arizona Revised Statutes, of the amounts listed above, $10,500,000 of the state general fund withholding tax revenues is allocated in fiscal year 2023-2024 to the Arizona commerce authority, of which $10,000,000 is credited to the Arizona commerce authority fund established by section 41-1506, Arizona Revised Statutes, and $500,000 is credited to the Arizona competes fund established by section 41-1545.01, Arizona Revised Statutes.

Of the amount appropriated in the operating lump sum, $3,500,000 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, and is allocated as follows:

1. $1,000,000 to distribute to a federally recognized state rural development council in the national rural development partnership in this state to partner with businesses, community leaders, service organizations, economic development organizations and rural municipalities to work directly in rural communities across this state.

2. $500,000 to establish and administer a small business incubator program to assist current and former inmates who are participating in a state program in which the state department of corrections and the department of economic security collaborate and bring comprehensive services to inmates who are nearing release.  On or before September 1, 2024, the authority shall submit a report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on the program implementation, the number of participants, the industry of employment or entrepreneurship and program results, including the recidivism rates of program participants.

3. $500,000 to distribute to a nonpartisan public foundation in this state that is qualified under section 501(c)(3) of the internal revenue code and that is associated with a statewide business trade organization that is qualified under section 501(c)(6) of the internal revenue code and that represents multiple industries to develop a strategic framework for policymakers to continue job growth, economic diversification and private sector investments that will make this state a top state economy and international trading partner by 2030.

4. $500,000 to distribute to a membership organization in this state that is qualified under section 501(c)(6) of the internal revenue code and that serves as a resource hub for all small businesses in this state to establish a program to recruit and retain truck drivers.

5. $1,000,000 to the Arizona state trade expansion program.

Monies in the economic transition resources line item shall be distributed to a nonprofit organization for capital projects, economic sustainability developments, renewable energy projects and broadband projects located within twenty miles of a coal mine that closed within the past five years.

The authority shall use the monies in the rural broadband accelerated match fund deposit line item to provide funding for projects that will receive matching monies from federal programs related to broadband expansion. 

On or before December 1, 2023, the authority shall report to the president of the senate, the speaker of the house of representatives and the director of the joint legislative budget committee detailing the authority's implementation plan for the monies in the trade office funding line item, including proposed trade office locations.

The authority shall distribute the monies in the wearable technology research line item to applied research centers located in this state that specialize in wearable technology, including hardware or software components, or both.  Subject to available funding, the authority shall distribute monies appropriated in the wearable technology research line item to any applied research center in increments of up to $250,000 within thirty days after the applied research center notifies the authority in writing that the applied research center has received a matching amount from sources other than this state.

An applied research center that receives a distribution pursuant to this section must collaborate with universities, nonprofit business associations, health science research centers, institutes or other technology businesses that do business in this state. On or before September 15, 2027, the applied research center or institute shall return to the authority all monies received by the applied research center or institute pursuant to this section that remain unexpended and unencumbered on September 1, 2027.  The authority shall deposit the returned monies in the state general fund.  The authority shall notify the president of the senate and the speaker of the house of representatives on or before July 1, 2024 and July 1, 2025 if the authority has not distributed any monies pursuant to this section.

An applied research center or institute that receives monies pursuant to this section shall annually submit an expenditure and performance report to the authority.  On or before February 1 of each year, the authority shall transmit the report to the joint legislative budget committee and the governor's office of strategic planning and budgeting.

For the purposes of this distributing the monies in the wearable technology research line item pursuant to this section, the authority is exempt from the requirements of title 41, chapter 23, Arizona Revised Statutes.

The appropriation made in the wearable technology research line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that any monies that remain unexpended and unencumbered on June 30, 2027 revert to the state general fund.

Sec. 2. Transfer of monies

All monies remaining unexpended and unencumbered on the effective date of this act from the appropriation made by Laws 2023, chapter 133, section 19 relating to the Asia trade offices are transferred to the state general fund.