41-1505.07. Eligibility for economic development assistance; definitions

A. The commission shall establish business incentives and assistance procedures for use by the department in evaluating the retention, expansion or location of businesses and other qualified projects within this state for the purpose of providing assistance in excess of one million dollars.

B. The provision of assistance to a business or other qualified project pursuant to this section is contingent on a finding by the commission that the retention, expansion or location of the business or other qualified project is clearly in the best interests of this state. This finding shall be contained in a resolution adopted by the commission. The resolution shall state that the retention, expansion or location of the business or other qualified project under consideration is clearly in the best interests of this state and shall set forth the evidence and reasons supporting this finding, including:

1. The estimated value of the annual tax revenue accruing to this state and its political subdivisions as a direct or indirect result of the location or expansion of such business or other qualified project.

2. The public benefit of the business or project from the retained or increased employment base.

3. The extent to which the economic development from the business or project raises the standard of living of persons affected by the business or project, increases free enterprise growth and increases the quality of life in this state through the actions of business, government and the community.

4. The ratio of economic benefit from wages paid and capital investment made by the business or project to the amount of assistance given by this state.

5. The contribution to the growth of existing businesses and creation of new businesses and business clusters that the business or project will enhance.

6. Whether the business or project will pay wages equal to or in excess of the latest available median income in the political subdivision in which such business locates and will provide its employees with benefits such as health care, retirement, child care, educational reimbursements and training.

7. The percentage of the products or services the company will export outside of this state over the first five years of operation.

8. In the case of a business location or expansion, the number and percentage of the new jobs to be created by the company to be filled by residents of this state in the first five years of operation and, in the case of a business retention, the number of jobs retained in this state.

C. Before assistance is provided the commission shall conduct or review a credibly prepared cost benefit analysis of the project to include:

1. Information on direct and indirect public and private costs.

2. Negative effects from the business or project, and the assumptions on which the information is based.

3. An analysis of the impact of the assistance on state revenues and expenditures, and the assumptions on which that analysis is based.

D. In the case of a business retention or expansion, the total value of the assistance provided pursuant to this section shall not exceed fifty per cent of the estimated increase in tax revenues received by this state and its political subdivisions as a direct or indirect result of the retention, expansion or location of the business or other qualified project as set forth in the resolution required under this section. In the case of a business retention, the total value of the assistance provided pursuant to this section shall not exceed fifty per cent of the estimated retention of tax revenues received by this state and its political subdivisions as a direct or indirect result of the retention of the business or other qualified project as set forth in the resolution required under this section.

E. The department shall develop an application process and necessary application forms for use in considering the provision of assistance for the retention, expansion or location of a business or other qualified project within this state. The application and the department's recommendation as to whether assistance should be provided shall be forwarded to the commission. The commission shall act on all applications forwarded by the department.

F. The department shall accept all applications requesting assistance as set forth in this section. The application developed pursuant to subsection E of this section shall be sufficient to provide for the determinations of both the department and the commission as required under this section.

G. If the business or project does not meet all of the criteria established in subsection B of this section, the commission may give assistance to the business or project but only after stating in the resolution for assistance its reasons for waiving the criteria that are not met.

H. A business or project that receives assistance shall enter into a memorandum of understanding with this state through the commission. The memorandum shall contain performance standards the business or project is expected to meet within the first five years after assistance is received. The business or project shall submit a report no less than annually of its performance in achieving the standards to the commission. The memorandum shall contain provisions that allow the state, through the commission, to stop, readjust or recapture all or part of the assistance given to the company either in full or in part on noncompliance with the terms of the memorandum.

I. In awarding assistance, the commission shall consider whether the assistance would have a negative impact on other Arizona businesses.

J. Any information submitted to or compiled by the commission in connection with its work, including all information concerning the award of grant monies, is subject to title 39, chapter 1, article 2, except that an applicant may show that specific information meets either of the following:

1. If made public, the information would divulge the applicant's trade secrets as defined in section 44-401.

2. The specific information is likely to cause substantial harm to the applicant's competitive position.

K. This section shall not apply to economic development assistance provided for in sections 41-1508, 41-1514.02 and 41-1532.

L. This section applies to a business or other qualified project where the commission provides assistance in excess of one million dollars.

M. For purposes of this section:

1. "Assistance" means loans, grants, loan guarantees or interest rate subsidies. Assistance also means anything of value or any service for a business arranged for or provided for by referral of the commission including job training, tax incentives, improvements or other services.

2. "Business or other qualified project" means a private, for-profit enterprise engaged in manufacturing, research and development, office or distribution activities, a research project submitted by the Arizona board of regents or its authorized representative, or any project sponsored on behalf of a qualified activity by this state, its political subdivisions, public or private universities in this state, tribal governments or economic development agencies.

41-1505.07. Eligibility for economic development assistance; definitions

A. The commission shall establish business incentives and assistance procedures for use by the department in evaluating the retention, expansion or location of businesses and other qualified projects within this state for the purpose of providing assistance in excess of one million dollars.

B. The provision of assistance to a business or other qualified project pursuant to this section is contingent on a finding by the commission that the retention, expansion or location of the business or other qualified project is clearly in the best interests of this state. This finding shall be contained in a resolution adopted by the commission. The resolution shall state that the retention, expansion or location of the business or other qualified project under consideration is clearly in the best interests of this state and shall set forth the evidence and reasons supporting this finding, including:

1. The estimated value of the annual tax revenue accruing to this state and its political subdivisions as a direct or indirect result of the location or expansion of such business or other qualified project.

2. The public benefit of the business or project from the retained or increased employment base.

3. The extent to which the economic development from the business or project raises the standard of living of persons affected by the business or project, increases free enterprise growth and increases the quality of life in this state through the actions of business, government and the community.

4. The ratio of economic benefit from wages paid and capital investment made by the business or project to the amount of assistance given by this state.

5. The contribution to the growth of existing businesses and creation of new businesses and business clusters that the business or project will enhance.

6. Whether the business or project will pay wages equal to or in excess of the latest available median income in the political subdivision in which such business locates and will provide its employees with benefits such as health care, retirement, child care, educational reimbursements and training.

7. The percentage of the products or services the company will export outside of this state over the first five years of operation.

8. In the case of a business location or expansion, the number and percentage of the new jobs to be created by the company to be filled by residents of this state in the first five years of operation and, in the case of a business retention, the number of jobs retained in this state.

C. Before assistance is provided the commission shall conduct or review a credibly prepared cost benefit analysis of the project to include:

1. Information on direct and indirect public and private costs.

2. Negative effects from the business or project, and the assumptions on which the information is based.

3. An analysis of the impact of the assistance on state revenues and expenditures, and the assumptions on which that analysis is based.

D. In the case of a business retention or expansion, the total value of the assistance provided pursuant to this section shall not exceed fifty per cent of the estimated increase in tax revenues received by this state and its political subdivisions as a direct or indirect result of the retention, expansion or location of the business or other qualified project as set forth in the resolution required under this section. In the case of a business retention, the total value of the assistance provided pursuant to this section shall not exceed fifty per cent of the estimated retention of tax revenues received by this state and its political subdivisions as a direct or indirect result of the retention of the business or other qualified project as set forth in the resolution required under this section.

E. The department shall develop an application process and necessary application forms for use in considering the provision of assistance for the retention, expansion or location of a business or other qualified project within this state. The application and the department's recommendation as to whether assistance should be provided shall be forwarded to the commission. The commission shall act on all applications forwarded by the department.

F. The department shall accept all applications requesting assistance as set forth in this section. The application developed pursuant to subsection E of this section shall be sufficient to provide for the determinations of both the department and the commission as required under this section.

G. If the business or project does not meet all of the criteria established in subsection B of this section, the commission may give assistance to the business or project but only after stating in the resolution for assistance its reasons for waiving the criteria that are not met.

H. A business or project that receives assistance shall enter into a memorandum of understanding with this state through the commission. The memorandum shall contain performance standards the business or project is expected to meet within the first five years after assistance is received. The business or project shall submit a report no less than annually of its performance in achieving the standards to the commission. The memorandum shall contain provisions that allow the state, through the commission, to stop, readjust or recapture all or part of the assistance given to the company either in full or in part on noncompliance with the terms of the memorandum.

I. In awarding assistance, the commission shall consider whether the assistance would have a negative impact on other Arizona businesses.

J. Any information submitted to or compiled by the commission in connection with its work, including all information concerning the award of grant monies, is subject to title 39, chapter 1, article 2, except that an applicant may show that specific information meets either of the following:

1. If made public, the information would divulge the applicant's trade secrets as defined in section 44-401.

2. The specific information is likely to cause substantial harm to the applicant's competitive position.

K. This section shall not apply to economic development assistance provided for in sections 41-1508, 41-1514.02 and 41-1532.

L. This section applies to a business or other qualified project where the commission provides assistance in excess of one million dollars.

M. For purposes of this section:

1. "Assistance" means loans, grants, loan guarantees or interest rate subsidies. Assistance also means anything of value or any service for a business arranged for or provided for by referral of the commission including job training, tax incentives, improvements or other services.

2. "Business or other qualified project" means a private, for-profit enterprise engaged in manufacturing, research and development, office or distribution activities, a research project submitted by the Arizona board of regents or its authorized representative, or any project sponsored on behalf of a qualified activity by this state, its political subdivisions, public or private universities in this state, tribal governments or economic development agencies.