A.R.S. tit. 41 ch. 10 — Arizona Revised Statutes Title 41 Chapter 10 — Arizona Commerce Authority

41-1501. Definitions In this chapter, unless the context otherwise requires: 1. "Authority" means the Arizona commerce authority. 2. "Board" means the board of directors of the authority. 3. "Chief executive officer" means the chief executive officer of the authority. 4. "Direct job" means employment that is in direct connection with the operations or function of a business, facility or target industry, as determined and applied in standard economic modeling practices. 5. "Indirect job" means employment that is created in the local supply chain that serves a business, facility or target industry, as determined and applied in standard economic modeling practices. 6. "Induced job" means employment that is created as a result of local spending of the employees of the business, facility or target industry or the employees of suppliers that serves that business, facility or target industry, as determined and applied in standard economic modeling practices. 41-1502. Arizona commerce authority; board of directors; conduct of office; audit A. The Arizona commerce authority is established. The mission of the authority is to provide private sector leadership in growing and diversifying the economy of this state, creating high quality employment in this state through expansion, attraction and retention of businesses and marketing this state for the purpose of expansion, attraction and retention of businesses. B. The authority is governed by a board of directors consisting of: 1. The governor, who serves as chairperson. 2. The chief executive officer. 3. Seventeen private sector business leaders who are chief executive officers of private, for-profit enterprises. None of these members may be an elected official of any government entity. These members must be appointed from geographically diverse areas of this state and not all from the same county. These members shall serve staggered three-year terms of office beginning and ending on the third Monday in January. These members shall be appointed as follows: (a) Nine members who are appointed by the governor. (b) Four members who are appointed by the president of the senate. (c) Four members who are appointed by the speaker of the house of representatives. 4. The following as ex officio members without the power to vote: (a) The president of the senate or the president's designee. (b) The speaker of the house of representatives or the speaker's designee. (c) The president of the Arizona board of regents. (d) The president of each state university under the jurisdiction of the Arizona board of regents. (e) One president of a community college who is appointed by a statewide organization of community college presidents. (f) The chairperson of the governor's council on small business, or its successor. (g) The chairperson of the workforce Arizona council established by executive order pursuant to section 41-5401. (h) One member of the rural business development advisory council established by section 41-1505 who is appointed by the governor. (i) The president of a statewide organization of incorporated cities and towns who is appointed by the governor. (j) The president of a statewide organization of county boards of supervisors who is appointed by the governor. C. For members who are appointed by the governor pursuant to subsection B of this section, before appointment by the governor, a prospective member of the board of directors shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. D. The following shall serve as technical advisors to the board to enhance collaboration among state agencies to meet infrastructure needs and facilitate growth opportunities throughout this state: 1. The director of environmental quality. 2. The state land commissioner. 3. The director of the department of revenue. 4. The director of the office of tourism. 5. The director of the department of transportation. 6. The director of water resources. 7. The director of the department of insurance and financial institutions. 8. The director of the Arizona-Mexico commission in the governor's office. 9. The director of the office of economic opportunity. 10. An attorney who is appointed jointly by the president of the senate and the speaker of the house of representatives and who has experience litigating constitutional cases involving article IX, section 7 of the Arizona Constitution. E. The governor shall appoint a cochairperson of the board of directors from among the voting members. The board may establish an executive committee consisting of the chairperson, the cochairperson, the chief executive officer and additional voting members of the board elected by the board. The chairperson may appoint subcommittees as necessary. F. The board may request assistance from representatives of other state agencies to maximize economic development opportunities by leveraging their access to strategic assets and planning processes. G. Board members serve without compensation but are eligible for reimbursement of expenses pursuant to section 41-1504, subsection E, paragraph 1. H. A majority of the voting members, which must include the chairperson and the chief executive officer, constitute a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the members present at an official meeting is sufficient for any action to be taken. I. The board shall keep and maintain a complete and accurate record of all of its proceedings. Public access to the board's records is subject to section 41-1504, subsection M. The public portion of board meetings shall be recorded. These recordings shall be posted on the authority's website within three business days after the meeting and shall remain on the website pursuant to section 38-431.01, subsection K. J. The board, executive committee, subcommittees and advisory councils are subject to title 38, chapter 3, article 3.1, relating to public meetings, except as follows: 1. In addition to section 38-431.03, the board, executive committee and subcommittees may meet in executive session for discussion about potential business development opportunities and strategies that, if made public, could potentially harm the applicant's, the potential applicant's or this state's competitive position. 2. Social and travel events related to the expansion, attraction and retention of businesses are not public meetings if no legal action involving a final vote or decision is taken. 3. Activities and events held in public for the purpose of announcing the expansion, attraction and retention of projects are not public meetings. K. The board and the officers and employees of the authority are subject to title 38, chapter 3, article 8, relating to conflicts of interest. L. The board of directors shall adopt written policies, procedures and guidelines for standards of conduct, including a gift policy, for members of the board and for officers and employees of the authority. M. The compensation of all officers and employees is considered a public record pursuant to title 39, chapter 1. N. The authority shall operate on the state fiscal year. The board shall cause an annual audit to be conducted on or before October 31 of each of the authority's public funds established by this chapter by an independent certified public accountant. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to chapter 7, article 10.1 of this title. If the auditor general takes no further action within thirty days after the audit is filed, the audit is considered to be sufficient. O. All state agencies shall cooperate with the authority and make available data pertaining to the functions of the authority as requested by the authority. P. The authority may not have more than one hundred full-time employees, excluding any full-time employees that are funded with monies other than state monies. 41-1503. Chief executive officer A. The board of directors shall employ a chief executive officer and prescribe the terms and conditions of the chief executive officer's employment. The chief executive officer serves at the pleasure of the board under the terms of a performance based contract. B. The chief executive officer is responsible for managing, administering and supervising the activities of the authority. C. The chief executive officer shall negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the authority or to carry out or accomplish the purposes of this chapter. 41-1504. Powers and duties; e-verify requirement A. The board, on behalf of the authority, may: 1. Adopt and use a corporate seal. 2. Sue and be sued. 3. Enter into contracts as necessary to carry out the purposes and requirements of this chapter, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 and interagency service agreements as provided by section 35-148. 4. Lease real property and improvements to real property for the purposes of the authority. Leases by the authority are exempt from chapter 4, article 7 of this title, relating to management of state properties. 5. Employ or retain legal counsel and other consultants as necessary to carry out the purposes of the authority. 6. Develop and use written policies, procedures and guidelines for the terms and conditions of employing officers and employees of the authority and may include background checks of appropriate personnel. B. The board, on behalf of the authority, shall: 1. Develop comprehensive long-range strategic economic plans for this state and submit the plans to the governor. 2. Annually update a strategic economic plan for submission to the governor. 3. Accept gifts, grants and loans and enter into contracts and other transactions with any federal or state agency, municipality, private organization or other source. C. The authority shall: 1. Assess and collect fees for processing applications and administering incentives. The board shall adopt the manner of computing the amount of each fee to be assessed. Within thirty days after proposing fees for adoption, the chief executive officer shall submit a schedule of the fees for review by the joint legislative budget committee. It is the intent of the legislature that a fee shall not exceed one percent of the amount of the incentive. 2. Determine and collect registry fees for the administration of the allocation of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Such monies collected by the authority shall be deposited, pursuant to sections 35-146 and 35-147, in an application fees fund. Monies in the fund shall be used, subject to annual appropriation by the legislature, by the authority to administer the allocations provided in this paragraph and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. 3. Determine and collect security deposits for the allocation, for the extension of allocations and for the difference between allocations and principal amounts of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Security deposits forfeited to the authority shall be deposited in the state general fund. 4. Subject to legislative appropriation for that specific purpose, establish and supervise the operations of full-time or part-time offices in other states and foreign countries for the purpose of expanding direct investment and export trade opportunities for businesses and industries in this state. Any such legislative appropriation shall be based on the objective research prepared by the authority pursuant to this paragraph, to determine that the effort would be beneficial to the economy of this state. On or before December 1 of each year, the authority shall submit to the joint legislative budget committee a report on the activities of each trade office operated by the authority during the prior fiscal year and objective research that identifies potential offices, if any, in other states and foreign countries for the purpose of expanding direct investment and export trade opportunities for businesses and industries in this state. 5. Establish a program by which entrepreneurs become aware of permits, licenses or other authorizations needed to establish, expand or operate in this state. 6. Post on its website on an annual basis a report that contains at least the following information and submit a copy to the governor, the president of the senate and the speaker of the house of representatives: (a) The cumulative progress made toward its goals for direct job creation, capital investment and higher average wages and the estimated number of indirect jobs and induced jobs created as a result of the work and the programs of the authority. (b) To the extent not prohibited by law, information on each incentive application approved by the authority in the fiscal year, including the amount of the incentive approved or awarded and the applicant's activity that is projected or has been achieved, whichever is applicable, to qualify for the incentive. (c) Rural economic development outreach and impact data. (d) Small business outreach and impact data. 7. Develop and implement written policies and procedures relating to the administration of grants from the Arizona competes fund established by section 41-1545.01, including the following elements: (a) Procedures for documenting grantee selection and due diligence. (b) Procedures for verification of information submitted by grantees. (c) Procedures for evaluating requests to amend grant terms and for documenting decisions relating to those requests. 8. Notwithstanding any other law, on request of the office of economic opportunity, disclose to the office of economic opportunity applicant information for incentives administered, in whole or in part, by the authority. Any confidentiality requirements provided by law applicable to the information disclosed pursuant to this paragraph apply to the office of economic opportunity. 9. On or before December 31 of each year, compile the data collected pursuant to subsection F of this section and submit a report to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state. D. The authority, through the chief executive officer, may: 1. Contract and incur obligations reasonably necessary or desirable within the general scope of the authority's activities and operations to enable the authority 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 authority. 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. 4. Assess business fees for promotional services provided to businesses that export products and services from this state. The fees shall not exceed the actual costs of the services provided. 5. Establish and maintain one or more accounts in banks or other depositories, for public or private monies of the authority, from which operational activities, including payroll, vendor and grant payments, may be conducted. Individual funds that are established by law under the jurisdiction of the authority may be maintained in separate accounts in banks or other depositories, but shall not be commingled with any other monies or funds of the authority. E. The chief executive officer shall: 1. Hire employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. The board of directors shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses and health and accident insurance. The officers and employees of the authority are exempt from any laws regulating state employment, including: (a) Chapter 4, articles 5 and 6 of this title, relating to state service. (b) Title 38, chapter 4, article 1 and chapter 5, article 2, relating to state personnel compensation, leave and retirement. (c) Title 38, chapter 4, article 2, relating to reimbursement of state employee expenses. (d) Title 38, chapter 4, article 4, relating to health and accident insurance. 2. Maintain three full-time employees to serve as advocates for small and rural businesses on economic development and regulatory matters before cities, towns, counties or state agencies. Two of the full-time employees shall be dedicated to small business growth, support and regulation, one of whom shall serve as a small business ombudsman. One of the full-time employees shall be dedicated to rural economic development. 3. On a quarterly basis, provide public record data in a manner prescribed by the department of administration related to the authority's revenues and expenditures for inclusion in the comprehensive database of receipts and expenditures of state monies pursuant to section 41-725. F. On or before September 30 of each year, each city, town and county in this state shall submit to the authority the city's, town's or county's statistics for the preceding fiscal year that include all of the following: 1. The average time from the submission of an initial building permit application to a certificate of occupancy. 2. The average time from the submission of a zoning application to zoning approval. 3. The average time from the submission of a final plat to the recordation of the final plat. 4. Any other statistics as determined by the authority or the municipality time frames advisory committee established by section 41-1527 relating to municipal and county support for economic development projects. G. In addition to any other requirement, in order to qualify for any grant, loan, reimbursement, tax incentive or other economic development incentive pursuant to this chapter, an applicant that is an employer must register with and participate in the e-verify program in compliance with section 23-214. The authority shall require verification of compliance with this subsection as part of any application process. H. Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management. I. The authority is exempt from title 18, chapter 1, articles 1 and 2, relating to statewide information technology. The authority shall adopt policies, procedures and guidelines regarding information technology. J. The authority is exempt from state general accounting and finance practices and rules adopted pursuant to chapter 4, article 3 of this title, but the board shall adopt written accounting practices, systems and procedures for the economic and efficient operation of the authority. The authority shall adopt policies pursuant to this subsection that prohibit using state monies as defined in section 35-321 to provide business executives lodging, alcoholic beverages, personal transportation or tickets to entertainment events for the purposes of attracting businesses to this state. K. The authority is exempt from section 41-712, relating to the installation and maintenance of telecommunication systems. L. The authority may lease or purchase motor vehicles for use by employees to conduct business activities. The authority is exempt from section 28-472, relating to the state motor vehicle fleet, and title 38, chapter 3, article 10, relating to vehicle usage and markings. M. Any tangible or intangible record submitted to or compiled by the board or the authority in connection with its work, including the award of monies, is subject to title 39, chapter 1, unless an applicant shows, or the board or authority determines, that specific information meets either of the following: 1. If made public, the information would divulge the applicant's or potential applicant's trade secrets, as defined in section 44-401. 2. If made public, the information could potentially harm the applicant's, the potential applicant's or this state's competitive position relating to potential business development opportunities and strategies. N. The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise. 41-1505. Rural business development advisory council A. The rural business development advisory council is established. The mission of the council is to advise the board of directors regarding rural business development strategies, including creating jobs, diversifying economies and attracting new investment. B. The council consists of the following members: 1. One representative from each county, seven of whom are appointed by the governor and four each of whom are appointed by the president of the senate and the speaker of the house of representatives. 2. One representative of a rural development organization that represents statewide interests who is appointed by the governor. 3. One member representing all Indian tribes, nations, bands and communities in this state who is appointed by the governor. 4. The chief executive officer or the chief executive officer's designee. C. Each year the governor shall appoint a member to serve as chairperson. The chairperson may be reappointed. Council members shall serve staggered three-year terms beginning and ending on the third Monday in January. The members of the council serve without compensation and are subject to title 38, chapter 3, article 8, relating to conflicts of interest. D. The council shall: 1. Recommend to the board of directors policy development and funding allocations to complement regional and local economic development strategies that focus on and assist rural communities. 2. Leverage local, state and federal resources to advance business in rural areas of this state. 3. Develop selection criteria and an application format for rural communities or areas to use in applying for matching monies. 4. Make recommendations for coordinating personnel activities of the authority to ensure that communities receive appropriate technical assistance to implement economic development efforts. 5. Assist local rural economic development professionals, main street project managers and others involved in economic development. 6. Make recommendations regarding: (a) State responsibilities under any necessary contracts with consultants, including the national main street center of the national trust for historic preservation. (b) Coordination of the activities of other state agency personnel assisting with rural economic development programs. 7. Monitor the progress of main street communities and other aspects of the program. 8. Coordinate the expenditure of available federal monies to support rural business and economic development programs. E. Each year the council shall develop a priority list of economic strength projects that meet the criteria established by section 28-7281 and submit the list to the chief executive officer. The council shall confer with regional planning agencies and local authorities that would be affected by a specific economic strength project and shall submit their comments to the chief executive officer. After review by the board, the chief executive officer shall transmit the priority list and comments to the state transportation board. The council shall set priorities for individual projects based on the following: 1. The cost of the project. 2. The number of jobs that the project will cause to be created, retained or increased. 3. The nature and amount of capital investment or other contribution to the economy of this state or a local authority as a result of the project. 4. The likelihood that benefits resulting from the project will exceed the costs of the project. 5. Whether the amount of contributions to the project provided from other than the economic strength project fund is at least ten percent of the cost of the project. 6. The amount and percentage of funding for the project that will come from a source other than the economic strength project fund as compared to other proposed projects. 7. The amount of expenditures required for local infrastructure relating to the project. 8. The magnitude of the project and its relative value to this state or a local authority as compared to other proposed projects. 9. The extent to which the project would contribute to achieving an equitable distribution of monies and projects among the various regions of this state and throughout this state as a whole. 10. The specific time schedule for completion of the project. 41-1505.12. Arizona commerce authority local communities fund (Caution: 1998 Prop 105 applies) A. The Arizona commerce authority local communities fund is established consisting of monies deposited pursuant to sections 5-601.02(H)(4)(b) and 5-601.02(I)(6)(b)(vii), and interest earned on those monies. The chief executive officer shall administer the fund. The fund is not subject to appropriation, and expenditures from the fund are not subject to outside approval notwithstanding any statutory provision to the contrary. B. Monies received pursuant to sections 5-601.02(H)(4)(b) and 5-601.02(I)(6)(b)(vii) shall be deposited directly with the Arizona commerce authority local communities fund. On notice from the chief executive officer, the state treasurer may invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. No monies in the fund shall revert to or be deposited in any other fund, including the state general fund. Monies in the fund are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. Monies provided from the fund shall supplement, not supplant, existing monies. C. All monies in the fund shall be used by the authority to provide grants to cities, towns and counties for government services that benefit the general public, including public safety, mitigation of impacts of gaming, or promotion of commerce and economic development. All grant applications must have a written endorsement of a nearby Indian tribe to receive an award of funds from the authority. 41-1506. Arizona commerce authority fund A. The Arizona commerce authority 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 shall administer the fund. On notice from the chief executive officer, 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 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. 41-1506.01. Arizona twenty-first century competitive initiative fund A. The Arizona twenty-first century competitive initiative fund is established to be administered by the authority. The fund consists of monies appropriated by the legislature, earnings from the fund and gifts or grants donated or given to the fund. Monies in the fund are subject to legislative appropriation and shall be used as prescribed by this section. B. On notice from the chief executive officer, the state treasurer may invest and divest monies in the fund as provided by section 35-313. The state treasurer shall credit monies earned from investments to the fund. C. The chief executive officer shall enter into a memorandum of understanding with a nonprofit corporation to use monies in the fund in order to: 1. Build and strengthen medical, scientific and engineering research programs and infrastructure in areas of greatest strategic value to this state's competitiveness in the global economy with an emphasis in bioscience. 2. Actively engage scientific research, academic and medical institutions that represent both the public and private sectors on a worldwide basis. D. In order to enter into a memorandum of understanding pursuant to subsection C of this section, a nonprofit corporation shall: 1. Be a statewide nonprofit corporation that is incorporated in this state and that is qualified under section 501(c)(3) of the United States internal revenue code. 2. Agree on a quarterly basis to report on investments made and agree on an annual basis to report on measurable objectives and other funds leveraged with state investments. 3. Identify and document private or philanthropic investments that are equivalent to fifty million dollars or more in fiscal year 2005-2006. For fiscal year 2006-2007, the nonprofit corporation shall provide funding to achieve the goals prescribed in subsection C of this section in an amount equal to or greater than the financial assistance provided by this state. E. The chief executive officer shall submit the memorandum of understanding with the nonprofit corporation to the joint legislative budget committee for review before expending any appropriated state monies. The initial submission shall include provisions that address how the nonprofit corporation accounts for the application and investment of monies pursuant to subsection C of this section, the documentation of investments made in whole or in part through funding pursuant to this section and the preparation and filing of annual audits of the fund with the auditor general. The initial submission shall also include performance measures to evaluate the effectiveness of the program and recommendations pertaining to prospective repayment to the fund by scientific, research, academic and medical institutions of a portion of the income derived from technology or intellectual property created or developed in whole or in part through funding pursuant to this section. The joint legislative budget committee shall review expenditures from the fund at least quarterly, including any changes to the memorandum of understanding, but may choose less frequent reviews. 41-1506.02. Major events fund; purpose; semiannual report A. The major events fund is established consisting of monies appropriated to the fund by the legislature and private donations. The authority shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund may be used: 1. To support the planning and operation of the competitive bid process for major events in coordination with the office of tourism, destination marketing organizations and local organizing committees. 2. To negotiate and make grants to local organizing committees or equivalent organizations for the operating costs of major events. Monies may not be used to supplant routine operating expenses of any political subdivision of this state. The grant for an event may not be more than twenty-five percent of the operating expenditures required under the event support contract between the host organization and the local organizing committee or equivalent organization. 3. For other economic development activities associated with major event operations. B. Before awarding a grant pursuant to subsection A, paragraph 2 of this section, the authority shall prepare a written statement signed by the chief executive officer that assesses the direct economic impact of the grant and contains a finding that the award of the grant is in the best interest of this state. C. The authority shall submit a semiannual report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before July 15 and December 15 of each year. Each report shall include, at a minimum, the amount of actual expenditures from the fund by purpose and an expenditure plan for all remaining monies by purpose. 41-1506.03. Made in Arizona special plate fund A. The made in Arizona special plate fund is established consisting of monies deposited pursuant to section 28-2470.29. The fund shall be administered by the authority. The first $32,000 in the fund shall be reimbursed to the person that paid the implementation fee to the department of transportation pursuant to section 28-2470.29. Not more than ten percent of the monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated. B. On notice from the chief executive officer, the state treasurer may invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. The chief executive officer shall annually allocate monies from the fund to support a program that does both of the following: 1. Advances workforce development in this state in the advanced manufacturing industry. 2. Fosters collaboration with community colleges located in this state and the advanced manufacturing industry. 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 for certification of the basic research payments at a time, on a form and in a manner prescribed by the authority. B. The authority 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 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 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. C. The authority shall establish the time and manner of the competitive process used in issuing certifications. In determining which applications must be issued certifications, the authority 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 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 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. 41-1508. Defense contractor restructuring assistance; definitions A. On July 1, 2011, the Arizona commerce authority succeeds to the remaining functions and responsibilities formerly performed by the department of commerce under this section. Any reference to department in this section is considered to refer to the Arizona commerce authority. B. The department shall establish and conduct a defense contractor restructuring assistance program to: 1. Assist qualified defense contractors in this state to maintain and attract the maximum share of available contracts with the United States department of defense. 2. Encourage qualified defense contractors in this state to diversify into commercial markets and consolidate facilities into this state. 3. Encourage qualified defense contractors in this state to adopt new manufacturing processes and technologies. C. The department shall coordinate a coalition of qualified defense contractors in this state to identify and address relevant issues and opportunities and to increase communication and the capacity to solve common problems. D. Until June 30, 2001, the department of commerce shall identify and certify to the department of revenue the names and relevant information relating to qualified defense contractors for purposes of available tax incentives. The department of commerce shall determine the effective date of certification, which in all events shall begin on the first day of a taxable year of a taxpayer, and the certification is valid only for five full consecutive calendar or fiscal years, as determined by the department of commerce. The department of commerce may revoke the certification for failure to qualify and comply with the terms and conditions prescribed by this section and shall immediately notify the department of revenue of a revocation. The department of revenue may also revoke the certification if it obtains information indicating a failure to qualify and comply. The department shall not certify any new qualified defense contractor after June 30, 2001. To obtain and maintain certification, a defense contractor must: 1. Apply to the department of commerce. 2. Submit and retain copies of all required information including information relating to the amount of tax benefits the defense contractor receives. 3. Allow such inspections and audits as are necessary to verify the accuracy of the submitted information. 4. Agree in writing with the department of commerce to furnish information relating to the amount of tax benefits the taxpayer receives each year for disclosure in composite form in an annual report by the department of commerce. E. For purposes of this section, "qualified defense contractor" or "contractor" means a business entity that on initial qualification meets all of the following requirements: 1. Has one or more current manufacturing, assembling, fabricating, research, development or design contracts directly with the United States department of defense that: (a) Total at least five million dollars in sales of tangible personal property manufactured, assembled, fabricated, researched, developed or designed in this state. (b) Do not require providing products or services directly to a particular military base or bases or installations. 2. Employs at least two hundred full-time equivalent employee positions in this state solely with respect to department of defense contracts. 41-1509. Career landscape information collection; distribution; posting; definitions A. The authority shall annually collect and compile all of the following information: 1. The most in-demand jobs in this state, including the starting salary and required education level for each of these jobs. 2. The average cost to attend each of the following: (a) Each university under the jurisdiction of the Arizona board of regents. (b) Community colleges. (c) Vocational programs as data is readily available through the U.S. department of education. (d) Private postsecondary institutions as data is readily available through the U.S. department of education. 3. The lowest to highest median monthly student loan payment among undergraduate fields of study for individuals who attended each of the following: (a) Each university under the jurisdiction of the Arizona board of regents. (b) Community colleges. (c) Vocational programs as data is readily available through the U.S. department of education. (d) Private postsecondary institutions as data is readily available through the U.S. department of education. 4. The three-year student loan default rate of individuals who attended each of the following: (a) Each university under the jurisdiction of the Arizona board of regents. (b) Community colleges. (c) Vocational programs as data is readily available through the U.S. department of education. (d) Private postsecondary institutions as data is readily available through the U.S. department of education. 5. The graduation rate for each of the following: (a) Each university under the jurisdiction of the Arizona board of regents. (b) Community colleges. (c) Vocational programs as data is readily available through the U.S. department of education. (d) Private postsecondary institutions as data is readily available through the U.S. department of education. 6. The completion rates for all of the following: (a) Department of economic security-approved and United States department of labor-approved apprenticeship programs, as collected by the department of economic security. (b) High school equivalency programs in this state. (c) Career and technical education programs. 7. The lowest to highest median starting earnings among undergraduate fields of study for individuals who graduated from each of the following: (a) Each university under the jurisdiction of the Arizona board of regents. (b) Community colleges. (c) Vocational programs as data is readily available through the U.S. department of education. (d) Private postsecondary institutions as data is readily available through the U.S. department of education. B. Not later than December 1 of each year, the authority shall transmit the information collected and compiled pursuant to subsection A of this section to each public high school in this state to distribute to students. C. All state agencies, universities under the jurisdiction of the Arizona board of regents, community colleges, vocational programs and private postsecondary institutions shall provide data, reports and other information as requested by the authority to fulfill the requirements of this section. D. Not later than October 1 of each year, all state agencies, universities under the jurisdiction of the Arizona board of regents, community colleges, vocational programs and private postsecondary institutions shall provide the data, reports and other information necessary to fulfill the requirements of this section to the authority. E. The authority shall make the information collected and compiled pursuant to subsection A of this section publicly available and shall post this information on its website. F. For the purposes of this section: 1. "Community college" has the same meaning prescribed in section 15-1401. 2. "Vocational program" has the same meaning prescribed in section 15-1831. 41-1510. Water infrastructure and commerce grant fund A. The water infrastructure and commerce grant fund is established consisting of legislative appropriations, federal monies and private donations. The chief executive officer shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund may be used to provide grants to eligible entities for contracting for the design and construction of water infrastructure at the eligible entity's location. The authority may retain up to one percent of the monies in the fund annually to administer the fund. B. The following entities are eligible to apply for and receive grant monies pursuant to this section: 1. A public service corporation that provides water service pursuant to a certificate of convenience and necessity issued by the corporation commission and that is acting on behalf of an employer prescribed in paragraph 2 of this subsection. 2. An employer with more than two hundred fifty employees that is located in a county with a population of more than four hundred thousand persons and less than one million persons. C. The authority shall: 1. Prescribe a simplified form and procedure to apply for and approve grants. 2. Establish requirements and criteria by which grants will be awarded, which shall include at least the following: (a) Grants to eligible applicants only for new water infrastructure projects that are located at the eligible applicant's property in a county with a population of more than four hundred thousand persons and less than one million persons. (b) Grants for projects that create new jobs. (c) Grants for projects that begin after January 1, 2022. (d) Grants that are allocated and distributed not later than December 31, 2024. (e) Applicants may receive more favorable consideration for grant monies if the applicant includes collaboration and cooperation with other members and entities in the community. (f) Applicants shall certify that they are eligible to receive grant monies, shall describe the project and services requested and why the project and services are needed and shall certify that all grant monies will be used in compliance with this section, the authority's requirements, the application requirements and processes and otherwise applicable law. D. Before awarding a grant pursuant to this section, the authority shall prepare a written statement that is signed by the chief executive officer, that assesses the direct economic impact of the grant, including the number of new jobs that will be created, and that contains a finding that the award of grant monies is in the best interest of this state. E. On or before December 15 of each year, the authority shall submit an annual report to the joint legislative budget committee. The report shall include, at a minimum, the amount of actual expenditures from the fund by project and an expenditure plan for all remaining monies by project. 41-1510.01. Solar energy tax incentives; qualification A. The authority shall establish a procedure for identifying commercial solar energy projects that qualify for the purposes of the commercial solar energy income tax credits under sections 43-1085 and 43-1164. B. To qualify for the tax credits, a business must apply in a form prescribed by the authority, including: 1. The name, address and telephone number of the business purchasing the solar energy device or system. 2. The name, address and telephone number of a contact person with the business. 3. The projected date that the installation of the solar energy device or system will begin and the projected finish date. 4. The location where the solar energy device or system will be installed. 5. The type of solar energy device or system, its total cost, excluding financing costs, and the estimated annual performance level. 6. The projected amount of the credit against state income taxes. C. Applications under this section are confidential and are not subject to disclosure under title 39 for eighteen months after the date of application. D. The authority shall: 1. Establish a preapproval process for the certification of applications. 2. Review and evaluate each submitted application. 3. Determine within thirty days after receiving the application whether the application meets the criteria for the purposes of the commercial solar energy income tax credits. 4. Provide its initial certification of a project to the applicant and to the department of revenue. The initial certification shall include a unique identifying number for each certified installation. E. On the completion of each certified installation: 1. The business must: (a) Certify that the installed solar energy device or system is operational. (b) Provide the total amount of income tax credits to be claimed. 2. The authority shall review the installation expenses and issue a credit certificate to the business. The credit certificate shall include the assigned identifying number. 3. The authority shall transmit the credit information and certificate number to the department of revenue. F. The authority shall not certify tax credits under this section in any calendar year that exceed a total of one million dollars. The total allowed under this section shall be reserved for the taxpayer based on preapproval under subsection D of this section. The final credit certificate issued under subsection E of this section shall not exceed the amount reserved. A taxpayer whose taxable year overlaps two calendar years may request approval from the second calendar year's cap if the first year's cap is exhausted and the application under subsection B of this section is submitted before the end of the taxpayer's taxable year. Nothing in this section shall be construed as allowing the taxpayer to claim credits under sections 43-1085 and 43-1164 in any taxable year other than the taxable year the solar energy device was installed. G. The authority and the department of revenue shall collaborate in adopting rules that are necessary to accomplish the intent and purpose of this section. 41-1511. State broadband office; director; duties A. The state broadband office is established in the authority. B. The state broadband office consists of the state broadband director, who serves at the pleasure of the chief executive officer. The chief executive officer may hire staff for the state broadband office to do the following: 1. Coordinate the implementation of local, state and federal broadband programs. 2. Coordinate and execute federal broadband grant applications with public and private stakeholders. 3. Provide guidance and support to stakeholders in navigating local, state and federal regulatory and permitting processes for broadband infrastructure projects. 4. Provide guidance and support to local and state public and private partners on federal, state and local broadband policies and practices. 5. Solicit feedback from stakeholders to develop long-term local, state and federal broadband policy priorities that may influence local, state and federal broadband policies and programs. 6. Work with local partners, state and federal agencies and telecommunication providers to develop plans to improve internet connectivity and resiliency in this state. C. The state broadband office shall publish and maintain a state broadband plan that further elaborates on the strategies and tactics to achieve this state's broadband goals. D. The state broadband office may develop rules and guidelines to implement this section. 41-1512. Qualified facility income tax credits; qualification; definitions (Rpld. 1/1/32) A. For taxable years beginning from and after December 31, 2012, income tax credits are allowed for expanding or locating a qualified facility in this state pursuant to sections 43-1083.03 and 43-1164.04. Only capital investments in a qualified facility that are made not more than thirty-six months before submitting an application for preapproval are included in the computation of the credit. B. To be eligible for the income tax credits, a taxpayer must apply to the authority, on a form prescribed by the authority, for preapproval of the business as qualifying for the credits. The application must include: 1. The applicant's name, address, telephone number and federal taxpayer identification number or numbers. 2. The name, address, telephone number and email address of a contact person for the applicant. 3. The address of the site where the qualified facility will be located. 4. A detailed description of the qualified facility and fixed capital assets. 5. An estimate of the capital investment and number of employment positions with job duties associated with the qualified facility, including: (a) A schedule of qualifying investments. (b) A list of full-time employment positions, the estimated number of employees to be hired for the positions each year during the first five years of operation and the annual wages for each position, calculated without employee-related benefits. 6. A nonrefundable processing fee in an amount determined by the authority. 7. Other information as required by the authority to determine eligibility for the income tax credits and the amount of income tax credits, as prescribed by this section. 8. An affirmation, signed by an authorized executive representing the business, that the applicant: (a) Agrees to furnish records of expenditures for qualifying investments to the authority on request. (b) Will continue in business at the qualified facility for five full calendar years after postapproval for the credit, other than for reasons beyond the control of the applicant. (c) Agrees to furnish to the authority information regarding the amount of income tax credits claimed each year. (d) Authorizes the department of revenue to provide tax information to the authority pursuant to section 42-2003 for the purpose of determining any inconsistency in information furnished by the applicant. (e) Agrees to allow site visits and audits to verify the applicant's continuing qualification and the accuracy of information submitted to the authority. (f) Consents to the adjustment or recapture of any amount of income tax credit due to noncompliance with this section. 9. Letters of good standing from the department of revenue stating that the applicant is not delinquent in paying taxes. C. The applicant may qualify for the income tax credits pursuant to section 43-1083.03 or 43-1164.04, as applicable, if: 1. The applicant makes new capital investment in this state after June 30, 2012 in a qualified facility that is completed in a taxable year beginning from and after December 31, 2012. 2. At least fifty-one percent of the net new full-time employment positions with job duties associated with the qualified facility pay a wage that equals or exceeds one hundred twenty-five percent, or one hundred percent in the case of a qualified facility in a rural location, of the median annual wage for production occupations in this state, as determined by the most recent annual Arizona commerce authority occupational wage and employment estimates issued before the preapproval is issued pursuant to subsection I of this section. 3. All net new full-time employment positions include health insurance coverage for the employees for which the applicant pays at least sixty-five percent of the premium or membership cost. D. Final eligibility for an income tax credit is subject to any additional requirements prescribed by section 43-1083.03 or 43-1164.04, as applicable. E. An applicant may separately apply and qualify with respect to investments for separate expansions of a qualified facility. F. The amount of the income tax credit to be preapproved by the authority to a qualifying applicant is ten percent of the lesser of: 1. The amount the applicant has projected in total qualifying investment in the qualified facility. 2. Either: (a) If the total qualifying investment is less than $2,000,000,000, $200,000 for each net new full-time employment position projected by the applicant that has job duties associated with a qualified facility. (b) If the total qualifying investment is $2,000,000,000 or more, $300,000 for each net new full-time employment position projected by the applicant that has job duties associated with a qualified facility. G. Beginning with income tax credits allocated for 2013, an approved credit: 1. Must be claimed on a timely filed original income tax return, including extensions. 2. Must be claimed in five equal installments as provided by section 43-1083.03 or 43-1164.04. H. The authority shall establish a process for qualifying and preapproving applicants for the income tax credits. The authority shall not preapprove applicants as qualifying for credits under this section for any taxable year beginning from and after December 31, 2030. Preapproval is based on: 1. Priority placement established by the date that the applicant files its initial application with the authority. 2. The availability of income tax credit capacity under the dollar limit prescribed by subsection J of this section. I. Within thirty days after receiving a complete and correct application, the authority shall review the application to determine whether the applicant satisfies all of the criteria prescribed by this section and either preapprove the project as qualifying for the purposes of an income tax credit or provide reasons for its denial. The authority shall send copies of each preapproval to the department of revenue. J. The authority shall not preapprove income tax credits under this section that combined would exceed $125,000,000 in any calendar year, except as provided by this subsection and subsection K of this section. A preapproved amount applies against the dollar limit for the year in which the application was submitted regardless of whether the initial preapproval period extends into the following year or years. The authority shall not preapprove income tax credits under this section for any taxpayer in excess of $30,000,000 in any calendar year. K. The authority shall reallocate the amount of income tax credits that are voluntarily relinquished under subsection L of this section, that lapse under subsection M of this section or that lapse under subsection P of this section. The reallocation shall be to other businesses that applied under this section in the original credit ye