41-1506.01. Arizona twenty-first century competitive initiative fund

A. The Arizona twenty-first century competitive initiative fund is established to be administered by the authority. The fund consists of monies appropriated by the legislature, earnings from the fund and gifts or grants donated or given to the fund. Monies in the fund are subject to legislative appropriation and shall be used as prescribed by this section.

B. On notice from the chief executive officer, the state treasurer may invest and divest monies in the fund as provided by section 35-313. The state treasurer shall credit monies earned from investments to the fund.

C. The chief executive officer shall enter into a memorandum of understanding with a nonprofit corporation to use monies in the fund in order to:

1. Build and strengthen medical, scientific and engineering research programs and infrastructure in areas of greatest strategic value to this state's competitiveness in the global economy with an emphasis in bioscience.

2. Actively engage scientific research, academic and medical institutions that represent both the public and private sectors on a worldwide basis.

D. In order to enter into a memorandum of understanding pursuant to subsection C of this section, a nonprofit corporation shall:

1. Be a statewide nonprofit corporation that is incorporated in this state and that is qualified under section 501(c)(3) of the United States internal revenue code.

2. Agree on a quarterly basis to report on investments made and agree on an annual basis to report on measurable objectives and other funds leveraged with state investments.

3. Identify and document private or philanthropic investments that are equivalent to fifty million dollars or more in fiscal year 2005-2006. For fiscal year 2006-2007, the nonprofit corporation shall provide funding to achieve the goals prescribed in subsection C of this section in an amount equal to or greater than the financial assistance provided by this state.

E. The chief executive officer shall submit the memorandum of understanding with the nonprofit corporation to the joint legislative budget committee for review before expending any appropriated state monies. The initial submission shall include provisions that address how the nonprofit corporation accounts for the application and investment of monies pursuant to subsection C of this section, the documentation of investments made in whole or in part through funding pursuant to this section and the preparation and filing of annual audits of the fund with the auditor general. The initial submission shall also include performance measures to evaluate the effectiveness of the program and recommendations pertaining to prospective repayment to the fund by scientific, research, academic and medical institutions of a portion of the income derived from technology or intellectual property created or developed in whole or in part through funding pursuant to this section. The joint legislative budget committee shall review expenditures from the fund at least quarterly, including any changes to the memorandum of understanding, but may choose less frequent reviews.