HB2274 - 452R - House Bill Summary

House of Representatives

HB 2274

commerce and economic development commission

Sponsor: Representative Leff

DPA	Committee on Commerce and Economic Development
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2274 increases the number of members on the Commerce and Economic Development Commission.

Current Status

HB 2274 was amended in the Commerce and Economic Development Committee as follows:

· Delays the increase in Commission members until the beginning of next year.

· Strikes the duty of the Commission to administer the small business enterprise and research program.

· Clarifies that financial assistance may directly or indirectly support job creation.

· Differentiates the requirements for projects focused on business location and expansion and those targeted on business retention.

· Clarifies language associated with the fund’s set-asides for assistance to small businesses, rural businesses and economically disadvantaged areas of the state.

HB 2274 was further amended in Committee of the Whole as follows:

· Removes the CEDC’s ability to make loans to private entities for establishing a securities exchange or funding an operating deficit.

· Strikes the exemption from depositing in the CEDC fund for monies transferred to the securities regulatory and enforcement fund.

· Repeals statue dealing with the CEDC’s advancement of capital markets in the state.

· Requires the first $500,000 deposited in the CEDC fund each fiscal year from notice filing fees to be transferred to the securities regulatory enforcement fund.

· Makes technical and conforming changes.

History

The Commerce and Economic Development Commission (CEDC) is appointed by the governor to advise and coordinate economic development policy for the state of Arizona. The Commission administers the CEDC fund; the State’s economic development revolving loan fund which provides financial assistance and support for economic development. It is funded by proceeds from two Arizona Lottery scratch games and is used for small business, rural business, and other programs approved by the CEDC. The appropriated funds are used for various programs while the non-appropriated finds are used for loans and grants. According to the Executive Budget for fiscal year 2000-2001 the fund contained $1,832,400. The CEDC is also the approval body for the Economic Strength Program (ESP) which offers grants for road construction to towns, cities, and counties.

Currently the CEDC consists of five members. A quorum, consisting of four members, is necessary to conduct business. Actions are taken on the basis of a majority vote, though powers and duties may be delegated to a commission member or any of its agents or employees by unanimous vote. CEDC members serve staggered three year terms and are not eligible to receive compensation but can be reimbursed for expenses.

HB 2274 increases the CEDC membership to eight, five of whom constitute a quorum.

Provisions

· Increases CEDC membership from five to eight.

· Requires five members to be present to constitute a quorum.

Amendments