A. Subject to subsection B of this section, from and after September 30, 2013 through September 30, 2033, the state treasurer shall pay in monthly increments a city, town or county up to the amount determined under subsection C of this section for public infrastructure improvements for the benefit of a manufacturing facility.
B. The state treasurer shall not make any payments under subsection C of this section until both of the following apply:
1. Ten percent of the qualifying capital investment that is certified under subsection D of this section and that constitutes construction phase services, as defined in section 42-5075, has been made by the manufacturing facility.
2. From and after June 30, 2014.
C. The total amount paid to a city, town or county under subsection A of this section shall not exceed the total amount of state transaction privilege tax revenues collected under section 42-5010, subsection A from persons conducting business under section 42-5075 derived from contracts to construct buildings and associated improvements for the benefit of a manufacturing facility or seventy-five percent of the total cost of the public infrastructure improvements, whichever is less. The total amount paid to all cities, towns and counties under this subsection shall not exceed the following:
1. Through June 30, 2027, a maximum of $250,000,000.
2. Through June 30, 2028, a maximum of $300,000,000.
3. From and after June 30, 2028, a maximum of $350,000,000.
D. Within one hundred eighty days after the commencement of the construction of buildings and associated improvements for the benefit of a manufacturing facility that will require a city, town or county to make infrastructure improvements, the manufacturing facility shall file a sworn certification with the Arizona commerce authority and submit a copy of this sworn certification to the applicable city, town or county that the manufacturing facility agrees to either:
1. Make at least $3,000,000,000 in capital investment if the manufacturing facility is located in a county that has a population of eight hundred thousand persons or more.
2. Make at least $100,000,000 in capital investment if the manufacturing facility is located in a county that has a population of less than eight hundred thousand persons.
E. The certification under subsection D of this section shall contain a sworn statement or certification, signed by an officer of the manufacturing facility under penalty of perjury, that the information contained is true and correct according to the best belief and knowledge of the person submitting the information after a reasonable investigation of the facts.
F. Before submitting the certification to the Arizona commerce authority, the manufacturing facility and the city, town or county must enter into a written agreement that:
1. Identifies and states the cost of the public infrastructure improvements that will be constructed.
2. Identifies the sources of monies, including monies received pursuant to this section, that will be used to pay for the public infrastructure improvements.
G. On receipt of the sworn certification from a manufacturing facility pursuant to subsection D of this section, the city, town or county shall enter into a written agreement with the department. This agreement and any amendments or changes to the agreement shall:
1. State the cost of the public infrastructure improvements and separately identify the particular improvements that will be made.
2. State that the monies received under this section will be used exclusively to pay for public infrastructure improvements that are necessary to support the activities of the manufacturing facility.
3. State that the city, town or county will commit all of its portion of the revenue received pursuant to section 42-5029, subsection D derived from contracts subject to section 42-5075 to construct buildings and associated improvements for the benefit of the manufacturing facility for public infrastructure improvements that benefit the manufacturing facility.
4. State that the city, town or county will immediately notify the department when monies received under this section exceed the applicable percentage of the total cost of the public infrastructure improvements prescribed by subsection C of this section and will return the amount of the excess to the state treasurer for deposit in the state general fund.
5. Stipulate the actual amount of the construction funding that will be derived from sources other than this state.
6. State that the city, town or county will provide at least five percent of the actual amount of the construction funding stipulated to under paragraph 5 of this subsection.
7. Identify the persons who will be prime contractors on the construction of buildings and associated improvements for the benefit of a manufacturing facility and state that each prime contractor has been notified as to which portion of the contractor's income shall be separately identified to the department pursuant to section 42-5075, subsection H.
8. State that the city, town or county agrees that any amounts paid by the department to a prime contractor as identified under paragraph 7 of this subsection resulting from an audit adjustment or claim for credit or refund of taxes described in subsection C of this section shall be recovered by the department from the city, town or county by reducing the amount paid to the city, town or county under section 42-5029 from monies designated as distribution base in the month next succeeding the month in which the adjustment or claim is paid.
9. State that the city, town or county agrees that the department will use the amounts subject to any distribution required under subsection A of this section in calculating the maximum amount set by subsection C of this section.
10. State that the city, town or county agrees that if, on notification by the department, the state treasurer ceases payments because of the condition described in subsection H of this section, the city, town or county has no claim to additional payments if the department subsequently pays amounts to a prime contractor identified in an agreement with any city, town or county, as described in paragraph 7 of this subsection, due to an audit adjustment or claim for credit or refund of taxes described in subsection C of this section.
11. State that the city, town or county will provide to the department an analysis of the anticipated direct and indirect revenues this state will receive as a result of constructing the manufacturing facility. The analysis must include measures relating to the anticipated new jobs to be directly created by the manufacturing facility, including the total number of new jobs, the range of annual wages per employee and the median annual wages per employee. The department shall retain the analysis and may provide the analysis on request. Information in the analysis that qualifies as a trade secret as defined in section 44-401 or as confidential proprietary information that, if made public, could harm the competitive position of the manufacturing facility is confidential, is not a public record and may not be disclosed by the department.
12. Provide any other information deemed necessary by the department.
H. On notification by the department, the state treasurer shall cease payments under subsection A of this section if either of the following occurs:
1. The city, town or county has received monies that meet or exceed the applicable percentage of the total cost of the public infrastructure improvements prescribed by subsection C of this section that are necessary to support the activities related to the manufacturing facility as described in the written agreement pursuant to subsection G of this section.
2. The total amount subject to any distribution required under subsection A of this section has met the maximum amount set by subsection C of this section.
I. Notwithstanding subsection H, paragraph 2 of this section, the department's processing and payment of eligible requests for payment are subject to all of the following:
1. The department may continue to receive and process eligible requests for payment, including partial payments, after the state treasurer has ceased payments pursuant to subsection H, paragraph 2 of this section.
2. Amounts separately accounted for under section 42-5075, subsection H that have not been distributed to the applicable city, town or county shall be retained by the department and remain available for distribution to the applicable city, town or county when the remaining capacity and amounts separately accounted for under section 42-5075, subsection H for the city, town or county are sufficient to process an eligible request for payment, subject to paragraph 6 of this subsection.
3. The department shall process eligible requests for payment during each reporting period in which the department closes and reconciles transaction privilege tax collections under this section. Payment of each eligible request for payment is subject to the availability of amounts separately accounted for under section 42-5075, subsection H for the applicable city, town or county. If the remaining capacity is sufficient to pay all eligible requests for payment on hand, the department shall instruct the state treasurer to pay each request. An eligible request for payment, or any unpaid balance of a partially paid request, that cannot be fully paid during a reporting period remains on hand for processing in subsequent reporting periods, subject to this subsection.
4. If the remaining capacity is insufficient to pay all eligible requests for payment on hand, the department shall allocate the remaining capacity among the eligible requests for payment on a pro rata basis according to the requested amounts. If the pro rata share allocated to a city, town or county exceeds the amounts separately accounted under section 42-5075, subsection H for that city, town or county, the excess remaining capacity shall be reallocated on a pro rata basis among the remaining eligible requests for payment.
5. A city, town or county that has not submitted an eligible request for payment during a reporting period does not reduce the remaining capacity available to cities, towns or counties that have submitted eligible requests for payment during that reporting period.
6. When the remaining capacity is zero and the maximum amount prescribed in subsection C, paragraph 3 of this section has been met, the department shall distribute any amounts retained under paragraph 2 of this subsection to the state general fund and to cities, towns and counties pursuant to the distribution provisions of this chapter that would have applied if the amounts had not been separately accounted for under this section.
J. The department shall post on the department's website the intergovernmental agreements entered into with a city, town or county pursuant to this section and the development agreements entered into in connection with this section. On request by the department, a city, town or county that has entered into an agreement pursuant to subsection G of this section shall provide the department with a copy of any development agreement between the city, town or county and a manufacturing facility entered into in connection with this section. Before posting a development agreement, the department shall:
1. Provide the manufacturing facility with written notice and a reasonable opportunity to designate, within thirty days after receiving the notice, specific information in the agreement that the manufacturing facility considers to be either:
(a) A trade secret as defined in section 44-401.
(b) Confidential proprietary information that, if made public, could harm the competitive position of the manufacturing facility.
2. Redact information designated by the manufacturing facility under paragraph 1 of this subsection before posting the agreement, unless the department determines after consultation with the manufacturing facility that the designation is not reasonable under the circumstances. Information designated and redacted under this paragraph is confidential, is not a public record and may not be disclosed by the department.
K. For the purposes of this section:
1. "Associated improvement" includes any public infrastructure improvement that is made for the benefit of the manufacturing facility outside of the parcel or parcels of real property where the manufacturing facility is located.
2. "Capital investment" means an expenditure to acquire, lease or improve property that is used for the benefit of a manufacturing facility, including land, buildings, machinery and fixtures.
3. "Eligible request for payment" means a request for payment submitted by a city, town or county under an agreement entered into pursuant to subsection G of this section that the department has determined complies with the applicable agreement.
4. "Manufacturing facility":
(a) Means an establishment that is engaged in the mechanical, physical or chemical transformation or fabrication of materials, substances or components into new products in this state, that is classified within sections 31 through 33 inclusive of the 2007 edition of the North American industry classification system as published by the national technical information service of the United States department of commerce and that agrees to either:
(i) Make at least $3,000,000,000 in capital investment if the manufacturing facility is located in a county that has a population of eight hundred thousand persons or more.
(ii) Make at least $100,000,000 in capital investment if the manufacturing facility is located in a county that has a population of less than eight hundred thousand persons.
(b) Does not include mining, milling or smelting mineral ore or generating electricity.
5. "Population" means the population determined in the most recent United States decennial census or the most recent special census as provided in section 28-6532.
6. "Public infrastructure" means water production, delivery and disposal facilities, wastewater production, reclamation, recycling, treatment, storage, delivery and disposal facilities and roads that are necessary to support the activities of the manufacturing facility.
7. "Remaining capacity" means the amount by which the applicable maximum amount prescribed in subsection C of this section exceeds the total amount distributed to all cities, towns and counties under subsection A of this section.