2025-2026; commerce

Removed the establishment of the Office of Defense Innovation within the state authority, including its duties to liaise with defense organizations, pursue federal funding opportunities, and support defense-related industries.

Removed the requirement for the new office to submit annual reports to the governor and legislative leaders by December 31, 2026.

Changed the bill version designation from 'House Engrossed' to 'Senate Engrossed' and updated the descriptive header accordingly.

Adjusted the section numbering and title references to reflect the Senate version's structure, removing references to the added Article 7.

Created a new Office of Defense Innovation to serve as a liaison between Arizona and federal defense agencies, pursue federal funding opportunities, support defense contractors, and develop strategic plans for defense industry competitiveness.

Added a new requirement that program monies may not exceed 25% of a loan's principal amount, though the office may set a higher cap by rule.

Added a requirement that any principal and interest amounts repaid on program monies must be used only for additional microbusiness loans.

Added new reporting requirements requiring the office to submit detailed data on eligible entities, loan recipients, loan amounts, locations, and financial performance.

Extended the sunset date for the microbusiness loan program from 2024 to 2027.

Added a cap of $2,000,000 per eligible entity and a requirement that funds be allocated to ensure participation from at least two different counties.