Arizona Commerce Authority backs off controversial 'stipends'

Commerce Authority backs off controversial ‘stipends’ (access required)

By Alyson Zepeda - alyson.zepeda@azcapitoltimes.com

Published: May 11, 2012 at 5:59 pm

The Arizona Commerce Authority announced late Friday afternoon that it will not be awarding the $5,000 stipends it had earlier promised to15 companies eliminated from a competitive grant program.

The Goldwater Institute’s Clint Bolick sent a letter to the ACA earlier this month, warning that the awards for unsuccessful semifinalists in the agency’s Innovation Challenge could be a violation of a constitutional provision banning government gifts to private companies, unless the money creates a tangible public benefit.

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