41-1544

41-1544. Arizona job training fund; definitions

(Rpld. 1/1/12)

A. The Arizona job training fund is established consisting of legislative appropriations, monies deposited pursuant to section 23-769, gifts, grants and other monies. The department shall administer the fund. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Before any monies are disbursed pursuant to this section, the legislature may appropriate monies in the Arizona job training fund to be used for the department of economic security's jobs program to provide job training for welfare clients.

B. The director may accept and expend federal monies and private grants, gifts and contributions to assist in carrying out the purposes of this article. All monies for the program shall be expended only for the costs related to training, except that the department of commerce shall reimburse the department of economic security for the development costs for establishing a system to collect the job training employer tax imposed pursuant to section 23-769 in an amount of not more than four hundred thousand dollars and for incremental costs incurred by the department of economic security relating to the collection of the job training employer tax imposed pursuant to section 23-769. Monies in the Arizona job training fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. The Arizona job training fund monies shall be spent on approval of the department at the direction of the director in accordance with the guidelines and procedures adopted by the governor's council on workforce policy.

D. A minimum of twenty-five per cent of the monies appropriated to the Arizona job training fund shall be used to provide training to small businesses employing fewer than one hundred employees.

E. A minimum of twenty-five per cent of the monies appropriated to the Arizona job training fund shall be used to provide training to businesses located in rural areas of the state.

F. If a business receives monies for training from the Arizona job training fund and the business employs fewer than one hundred employees and is located in a rural area of this state, the business shall be included in the minimum percentages prescribed in subsections D and E of this section.

G. No more than fifty per cent of the monies in the Arizona job training fund shall be used to provide incumbent worker training.

H. A single grant awarded pursuant to this article shall not be more than ten per cent of the estimated annual total of monies deposited in the Arizona job training fund.

I. The department shall not approve grant monies for reimbursement of the following employer costs:

1. Fringe benefits, food and beverages, recruitment and signing bonuses for trainees and trainers.

2. Employer costs to complete a program application.

3. Except for small businesses, training expenses for partners or corporate officers.

4. Employee relocation expenses.

5. Training or course development costs that are not part of the employer's approved training plan.

6. Costs for assessing the training needs of employees.

7. Drug or other testing costs for employee screening or prescreening purposes.

8. Costs for trade shows and conferences or seminars that do not result in a skill certificate that is earned by an employee.

9. Other costs prohibited by rule.

J. For the purposes of this section:

1. "Rural area" means either:

(a) A county with a population of less than four hundred thousand persons according to the most recent United States decennial census.

(b) A census county division with less than fifty thousand persons in a county with a population of four hundred thousand or more persons according to the most recent United States decennial census.

2. "Small business" means a concern, including its affiliates, that employs fewer than one hundred employees.