House of Representatives

HB 2265

job training programs; administration

Sponsors: Representatives Somers, Chase, Leff, et. al

 

 
 
DPA

Committee on Commerce and Economic Development

W/D

Committee on Retirement and Government Operations

DPA

Caucus and COW

DP

Third Read

 

X

As Transmitted to the Governor

 

 

 

 

 

HB 2265 eliminates the Arizona Job Training Council and replaces it with a newly established Governor's Council on Workforce Policy established by Executive Order.

 

History

Established in 1993, the Arizona Job Training Program is currently administered by the Department of Commerce to provide funding for statewide job training assistance.  The 13-member Job Training Council develops guidelines for selection criteria and program operations, including application procedures, allowed/disallowed costs, limitations relating to project costs and procedures that ensure inclusion of all economic interests of the state.   The following may provide the training: a State community college; a private post-secondary educational institution licensed under Title 32, Chapter 30, a community college operated by a Tribal government, or another qualified training provider, including employer-provided training.

 

The Program is currently funded primarily by a .1% employer tax, although other monies such as any legislative appropriations, gifts, grants and other monies complete the make-up of the Job Training Fund.  Statute specifically directs all monies in the Fund to be expended for the costs related to training, except there may be reimbursement to the Department of Economic Security for administrative costs related to the collection of the employer tax.  To participate in the program, an employer must pay either 90% or 100% of the average county wage (excluding mining and government) to the employees receiving the training.  The Fund currently consists of approximately $9 million dollars and for FY 2002 awarded grants to 36 businesses training 14,778 employees statewide.  The current allocations for the job training monies include: 

 

Ř      25% for small businesses [fewer than 100 employees]

Ř      25% for rural businesses [until April 1 of each fiscal year]

Ř      No more than 50% for Incumbent training

 

HB 2265 renames the Arizona Job Training Council and makes it an executive branch Governor's Council on Workforce Policy.

 

Provisions

·          Replaces the Arizona Job Training Council with the Governor's Council on Workforce Policy established by Executive Order.

·          Transfers all records and other property as of the effective date of the Act.

·          Outlines the membership of the Council if one is created by Executive Order.

·          Establishes additional reporting requirements by the Governor’s Council on Workforce Policy.

·          Requires the Council to annually determine the qualifying wage rate by county, which may not be below 50% of the annual average wage.

·          Stipulates that after June 15th of each fiscal year, and unexpended portion of the small business or rural set-asides may be made available to any qualified applicant.

·          Includes representatives from businesses who shall compose at least 51% of the total council.

·          Eliminates the requirement that if more than 2% of the rural set aside remains unexpended on April 1 of the fiscal year, then any amount greater than the 2% may be made available to any qualified applicant.

 

 

 

 

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45th Legislature                       

Second Regular Session            2          June 25, 2002

 

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