This law changes several state commerce funds and programs, including more lottery money for the Arizona Competes fund after fiscal year 2028-2029, a wider insurer assessment, new duties for the Office of Defense Innovation, and higher population limits before local voters must approve certain infrastructure financing.
Official title: commerce; 2026-2027
- September 12, 2026
- Applies retroactively from and after June 29, 2026: Extension of the program end date to July 1, 2028
- Program ends July 1, 2028: Program whose end date is extended
- After fiscal year 2028-2029: Arizona Competes fund lottery deposit rises to $3,500,000
- Due by September 1, 2029: Office of Defense Innovation's full report
What changes
Before$1,750,000 a year from remaining state lottery money went to the Arizona Competes fund.
Now$1,750,000 a year through fiscal year 2028-2029, then $3,500,000 a year after that.
BeforeThe yearly financial surveillance assessment was charged to domestic insurers and paid for financial analysts who monitor domestic insurers. The fund's money was continuously appropriated, meaning it could be spent without a yearly vote by lawmakers.
NowThe assessment is charged to foreign, alien and domestic insurers that hold an active certificate of authority, with some reinsurers and service companies still excluded. It pays for running the insurance department's operational functions. The money can be spent only when the Legislature appropriates it.
BeforeVoters had to approve financial assistance from the state infrastructure finance authority for cities or towns over 50,000 people and counties over 200,000 people.
NowVoter approval is required only for cities or towns over 150,000 people and counties over 500,000 people. An election is still not needed if voters already approved substantially the same project.
BeforeThe Office of Defense Innovation could act as a liaison and support defense-related industries. It had to report each year.
NowThe office must contract with a qualified public or private entity to advance the state's defense, aerospace, dual use technology and national security ecosystem. It may develop a testing ground for autonomous systems and advanced air mobility, enter agreements, apply for and spend federal money for advanced air mobility, and hold Federal Aviation Administration (FAA) certificates and waivers. The law says the office has no regulatory authority. It must also send a full report by September 1, 2029 that includes recommendations on whether to continue, change or end the office.
BeforeThe state treasurer ran the advanced air mobility fund, and a spending plan had to go to the Joint Committee on Capital Review before any money was spent. The contractor recovery fund registrar could spend up to 14% of the prior year's deposits on staff and operations.
NowThe Arizona Commerce Authority runs the fund, and the spending-plan review step is removed. The registrar may spend up to 20%. In addition, the tourism office may accept and spend gifts, grants and donations. Securities fund money may also be used for railroad safety. A program's end date moves from July 1, 2026 to July 1, 2028.
Who it affects
- Voters in cities, towns and counties seeking state infrastructure financing
- Insurers holding an active Arizona certificate of authority
- Defense, aerospace and technology businesses
- Arizona Commerce Authority and its Office of Defense Innovation
- Arizona Department of Insurance and Financial Institutions
- Cities, towns and counties
- Arizona Corporation Commission
- Office of Tourism
- Arizona Lottery
- Contractor recovery fund registrar
What you need to do
Nothing.
What the law doesn't answer
- Which specific program has its end date extended to July 1, 2028
- What the repealed second version of the lottery fund law said
- How much more money the expanded insurer assessment will raise
- Which entity will receive the Office of Defense Innovation contract, or how much it will cost
- Where the autonomous systems testing ground would be located
- What the railroad safety spending will cover
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.