ARIZONA STATE SENATE
Phoenix, Arizona
commerce and
economic development commission
Purpose
Makes changes to the statutes relating to the Commerce and Economic Development Commission (CEDC) with respect to membership and training as well as project requirements for CEDC assistance.
Background
The CEDC was established in 1989 as the state’s economic policy and planning board. Currently, the CEDC consists of five members with at least four members constituting a quorum needed to conduct business. Members are required to have training and experience in finance, international trade, business management, environment, economics or programs designed to encourage the location, expansion and retention of businesses within the state. H.B. 2274 makes a number of modifications to the CEDC, including increasing the total membership to eight, with five members constituting a quorum and replacing the requirement that a member have training or experience in programs that encourage business location, retention and expansion with training or experience in economic development.
There is no anticipated fiscal impact to the state general fund associated with this measure.
Provisions
1. Eliminates the CEDC’s authority to administer the small business enterprise and research programs and to provide financial assistance relating to the programs.
2. Requires a CEDC member to have training and experience in economic development rather than training and experience in programs designed to encourage the location, expansion and retention of businesses in this state.
3. Modifies the CEDC, effective January 1, 2003, as follows:
a) Expands the membership from five to eight.
b) Increases the number of members for a quorum from four to five.
c) Requires a vote of seven members, rather than a unanimous vote, to delegate powers and duties to its employees.
4. Clarifies that the CEDC’s duty to provide financial assistance to businesses locating or expanding within the state can occur either directly or indirectly.
5. Stipulates that the CEDC's provision of assistance applies to a business or other qualified projects where the CEDC provides assistance in excess of $1 million.
6. Differentiates the requirements for projects focused on business location or expansion and projects focused on business retention.
7. Allows the CEDC the option of reviewing credibly prepared cost benefit analyses before providing assistance. (Current law requires the CEDC to conduct the analyses.)
8. Stipulates that performance standards for businesses or projects receiving assistance must be met within the first five years after assistance is received rather than the first five years after a business facility is occupied.
9. Makes technical and conforming changes.
10. Provides for a general effective date, unless otherwise noted.
Amendments
Adopted by Committee of the Whole
1. Restores current law authorizing the CEDC to manage a stock exchange and retains the current method by which monies are transferred from the CEDC fund to the securities regulatory enforcement fund.
2. Alters the CEDC voting requirements to delegate powers and duties to its members and employees.
3. Clarifies the duties the CEDC is required to perform when the assistance provided by the CEDC is in excess of $1 million.
4. Provides that a minimum of 25 percent of the monies disbursed from the CEDC fund must either directly or indirectly provide assistance to businesses employing fewer than 100 employees.
5. Moves the economically disadvantaged set-aside to the appropriate location in the CEDC statutes.
6. Makes technical changes.
CED 3/25/02 DPA 9-0-0-1 COM 4/17/02 DP 5-0-1-0
3rd Read 4/08/02 46-0-14-0 3rd Read 5/02/02 28-0-2-0
Prepared by Senate Staff
May 3, 2002