15-1670

15-1670. Appropriation for university research
infrastructure facilities; definition

A. In fiscal years 2007-2008 through 2030-2031, the following sums are appropriated
each year from the state general fund to the respective universities for lease-purchase
capital financing for research infrastructure projects:

1. $14,472,000 to Arizona state university.

2. $14,253,000 to the university of Arizona.

3. $5,900,000 to northern Arizona university.

B. Lease-purchase financing agreements under subsection A of this section:

1. Must be entered into before July 1, 2006.

2. Are subject to the requirements of section 15-1682.01.

C. The appropriations under subsection A of this section constitute continuing
year-to-year appropriations but do not constitute an obligation of the legislature or
this state to continue the appropriation in any fiscal year. The annual appropriation is
a current expense of this state in the fiscal year in which it occurs and is not a
general obligation indebtedness of this state or of any university. If the appropriation
is discontinued in any fiscal year, this state and the university are relieved of any
subsequent obligation pursuant to this section.

D. Beginning in fiscal year 2007-2008 and in each subsequent fiscal year for which
an appropriation is made pursuant to subsection A of this section, each university shall
deposit no later than October 1 with the state treasurer in the state general fund an
amount equal to:

1. Twenty per cent of the income from licensure and royalty payments received by
the university during the preceding fiscal year.

2. Twenty-five per cent of the income received by the university during the
preceding fiscal year from the sale or transfer of intellectual property developed by the
university.

3. If a constitutional amendment authorizing ownerships and securities by the
Arizona board of regents is approved by the qualified electors voting at a statewide
general election, thirty per cent of the income received in the preceding fiscal year
resulting from the conveyance of ownership interests in business enterprises acquired to
develop technology or intellectual property based in whole or in part on the university's
research, technology or intellectual property.

E. The aggregate amount transferred in each fiscal year for deposit in the state
general fund by all universities from all sources listed under subsection D of this
section shall not exceed the aggregate amounts appropriated in that fiscal year under
subsection A of this section. If amounts under subsection D of this section would
otherwise exceed the limit prescribed by this subsection, the deposited amounts shall be
proportionately reduced for each university.

F. On or before October 1 of each year, each university shall report to the joint
legislative budget committee the total amount of income the university received in the
preceding fiscal year from each category of income that is subject to deposit pursuant to
subsection D of this section.

G. For the purposes of this section, "research infrastructure" means installations
and facilities for continuance and growth of scientific and technological research
activities at the university.