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REFERENCE TITLE: commerce authority; solar grants |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2243 |
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Introduced by Representatives Gallego, Miranda C, Pancrazi, Tovar: Campbell, Senator Gallardo
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AN ACT
amending section 41‑1545.02, Arizona Revised Statutes; relating to the arizona commerce authority.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-1545.02, Arizona Revised Statutes, is amended to read:
41-1545.02. Grants from the Arizona competes fund
A. The chief executive officer may negotiate the award of monies from the Arizona competes fund. The monies shall be paid, by grant, for the purposes of:
1. Attracting, expanding or retaining Arizona basic enterprises that meet the requirements prescribed by subsection B of this section, that achieve the performance and qualification targets developed under subsection C of this section and that enter into an agreement with the chief executive officer as provided by subsection C of this section. In awarding monies pursuant to this paragraph, the chief executive officer shall give preference to job training and infrastructure activities that create private sector jobs.
2. Supporting and advancing programs and projects for rural businesses, small businesses and business development that enhance economic development.
3. Providing to cities and towns monies that would assist the city or town in establishing a renewable energy incentive district pursuant to section 9‑499.14 and to defray the additional administrative costs of issuing solar permits. Any city or town applying for grants pursuant to this paragraph must certify that the city or town shall use a portion of the monies to implement a program in which solar permits would be issued within six weeks of a person's application.
B. To be eligible to receive a deal closing grant under subsection A, paragraph 1 of this section, an applicant must:
1. Be in good standing under the laws of the state in which the applicant was formed or organized, as evidenced by a certificate issued by the secretary of state or other state official having custody of the records pertaining to entities or other organizations formed under the laws of that state.
2. Owe no delinquent taxes to a taxing jurisdiction in this state.
3. Qualify as an Arizona basic industry.
4. Pay compensation that exceeds, on average, one hundred per cent of the median wage by county as determined annually by the authority.
5. Include health insurance for employees for which the applicant pays at least sixty‑five per cent of the premium or membership cost.
6. Demonstrate by analysis by an independent third party that estimated income, property and transaction privilege tax and government fee revenues in this state will exceed state incentives.
C. Before awarding a grant from the fund under this section subsection A, paragraph 1 or 2 of this section, the chief executive officer must enter into a written agreement with the applicant specifying that:
1. A reasonable percentage of the total amount of the grant may be withheld until the recipient meets specified performance targets.
2. If the chief executive officer finds that the grant recipient has not met each of the performance targets specified in the agreement as of a date stated in the agreement:
(a) The recipient must repay the grant and any related interest to this state at an agreed rate and on agreed terms. The repayment may be prorated to reflect partial attainment of performance targets.
(b) The chief executive officer shall not disburse any remaining grant money to the recipient under the agreement.
(c) The chief executive officer may assess specified penalties against the recipient for noncompliance.
3. If any part of the grant is used to build a capital improvement, this state may:
(a) Retain a lien or other security interest in the improvement in proportion to the percentage of the grant amount used to pay for the improvement.
(b) Require the recipient, if the improvement is sold, to:
(i) Repay to this state the grant monies used to pay for the improvement, with interest at a rate and according to terms stated in the agreement.
(ii) Share with this state a proportionate amount of any profit realized from the sale.
D. For grants awarded pursuant to subsection A, paragraph 1 or 2 of this section the chief executive officer must determine:
1. The performance targets and dates required to be included in each grant agreement.
2. If the grant agreement includes withholding a percentage of the grant until the recipient meets the performance targets, the percentage of the grant money to be withheld.
E. Before awarding a grant from the fund under this section subsection A, paragraph 1 or 2 of this section, the authority must prepare a written statement, signed by the chief executive officer, that, specifically and in detail, assesses the direct economic impact of the grant. The statement must:
1. Include a finding that the enterprise is clearly in the best interests of this state.
2. Set forth the evidence and reasons supporting this finding, including:
(a) The estimated annual tax revenue accruing to this state and its political subdivisions as a direct or indirect result of the enterprise.
(b) The public benefit of the enterprise from the employment base, including the estimated number and the median wage of jobs to be created in this state by the potential recipient each year.
(c) The extent to which the economic development from the enterprise will raise the standard of living of affected persons, increases free enterprise growth and increases the quality of life in this state.
(d) The ratio of economic benefit from wages paid and capital investment made by the enterprise to the amount of the grant.
(e) The contribution from the enterprise to the growth of existing businesses and creation of new businesses and business clusters.
(f) Whether the enterprise will provide its employees with benefits such as retirement, child care, educational reimbursements and training.
(g) The percentage of the products or services the enterprise will export outside of this state over the first five years of operation.
(h) Any other information the chief executive officer considers to be necessary for inclusion in the statement.