Bill Text: AZ HB2232 | 2016 | Fifty-second Legislature 2nd Regular | Introduced


Bill Title: Job training fund; lottery revenues

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Failed) 2016-02-17 - House COM Committee action: Held [HB2232 Detail]

Download: Arizona-2016-HB2232-Introduced.html

 

 

 

REFERENCE TITLE: job training fund; lottery revenues

 

 

 

State of Arizona

House of Representatives

Fifty-second Legislature

Second Regular Session

2016

 

 

HB 2232

 

Introduced by

Representatives Bolding, Andrade, Espinoza, Fernandez: Cardenas, Gabaldón, Hale, Mendez, Otondo

 

 

AN ACT

 

amending sections 5‑572, 41‑1544 and 41‑1545.01, Arizona Revised Statutes; amending Laws 2000, chapter 383, section 10, as amended by Laws 2002, chapter 264, section 4, Laws 2007, chapter 293, section 3, Laws 2011, second special session, chapter 1, section 126 and laws 2015, chapter 10, section 10; relating to the arizona job TRAINING fund.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 5-572, Arizona Revised Statutes, is amended to read:

START_STATUTE5-572.  Use of monies in state lottery fund; report

A.  If there are any bonds or bond related obligations payable from the state lottery revenue bond debt service fund, the state lottery revenue bond debt service fund shall be secured by a first lien on the monies in the state lottery fund after the payment of operating costs of the lottery, as prescribed in section 5‑555, subsection A, paragraph 1, until the state lottery bond debt service fund contains sufficient monies to meet all the requirements for the current period as required by the bond documents.  Debt service for revenue bonds issued pursuant to this chapter shall be paid first from monies that would have otherwise been deposited pursuant to this section in the state general fund.  After the requirements for the current period have been satisfied as required by the bond documents, the monies in the state lottery fund shall be expended for the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery.

B.  Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsection A of this section, ten million dollars shall be deposited in the Arizona game and fish commission heritage fund established by section 17‑297.

C.  Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A and B of this section, five million dollars shall be allocated to the department of child safety for the healthy families program established by section 8‑481, four million dollars shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15‑1643, three million dollars shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3, two million dollars shall be allocated to the department of health services for the health start program established by section 36‑697, two million dollars shall be deposited in the disease control research fund established by section 36‑274 and one million dollars shall be allocated to the department of health services for the federal women, infants and children food program.  The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41‑563 and the allocations are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.  If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis.

D.  If the state lottery director determines that monies available to the state general fund may not equal eighty‑four million one hundred fifty thousand dollars in a fiscal year, the director shall not authorize deposits to the Arizona game and fish commission heritage fund pursuant to subsection B of this section until the deposits to the state general fund equal eighty‑four million one hundred fifty thousand dollars in a fiscal year.

E.  Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through D of this section, one million dollars or the remaining balance in the fund, whichever is less, is appropriated to the department of economic security for grants to nonprofit organizations, including faith based organizations, for homeless emergency and transitional shelters and related support services. The department of economic security shall submit a report on the amounts, recipients, purposes and results of each grant to the governor, the speaker of the house of representatives and the president of the senate on or before December 31 of each year for the prior fiscal year and shall provide a copy of this report to the secretary of state.

F.  Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through E of this section, and after a total of at least ninety‑nine million six hundred forty thousand dollars has been deposited in the state general fund, three million five hundred thousand dollars shall be deposited in the Arizona competes job training fund established by section 41‑1545.01 41‑1544.  The balance in the state lottery fund remaining after deposits into the Arizona competes job training fund shall be deposited in the university capital improvement lease‑to-own and bond fund established by section 15‑1682.03, up to a maximum of eighty percent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents.

G.  All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund.

H.  Except for monies expended for debt service of revenue bonds as provided in subsection A of this section, monies expended under subsection A of this section are subject to legislative appropriation.

I.  The commission shall transfer monies prescribed in this section on a quarterly basis. END_STATUTE

Sec. 2.  Section 41-1544, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1544.  Arizona job training fund; definitions

A.  The Arizona job training fund is established consisting of legislative appropriations, monies deposited pursuant to section 5‑572, gifts, grants and other monies.  The authority shall administer the fund.  On notice from the chief executive officer, 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.

B.  The chief executive officer 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.  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 authority at the direction of the chief executive officer in accordance with the guidelines and procedures adopted by the governor's council on workforce policy.

D.  A minimum of twenty‑five percent 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 percent 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 percent 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 percent of the estimated annual total of monies deposited in the Arizona job training fund.

I.  The authority 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 seven hundred fifty 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 seven hundred fifty 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. END_STATUTE

Sec. 3.  Section 41-1545.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1545.01.  Arizona competes fund; appropriation

A.  The Arizona competes fund is established consisting of:

1.  Withholding tax revenues allocated to the fund from the job creation withholdings clearing account pursuant to section 43‑409, subsection B, paragraph 2.

2.  Any other amounts dedicated to the fund by law.

3.  Gifts, grants and other donations received for that purpose.

4.  Any available monies received from the United States government, including monies from the American recovery and reinvestment act of 2009 (P.L. 111‑5).

B.  The sum of $3,500,000 is appropriated from the state general fund in fiscal year 2016‑2017 and each fiscal year thereafter to the fund.

B.  C.  Monies credited to the fund may be deposited in the state treasury or in a bank or other depository pursuant to section 41‑1504, subsection D, paragraph 5.

C.  D.  The chief executive officer shall administer the fund.  On notice from the chief executive officer, the state treasurer shall invest and divest any monies in the fund deposited in the state treasury as provided by section 35‑313, and monies earned from investment shall be credited to the fund.  Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

D.  E.  The chief executive officer shall use monies in the fund exclusively for the purposes of this article. END_STATUTE

Sec. 4.  Laws 2000, chapter 383, section 10, as amended by Laws 2002, chapter 264, section 4, Laws 2007, chapter 293, section 3, Laws 2011, second special session, chapter 1, section 126 and Laws 2015, chapter 10, section 10, is amended to read:

Sec. 10.  Delayed repeal

A.  Section 23-730.02, Arizona Revised Statutes, is repealed from and after December 31, 2016.

B.  Title 41, chapter 10, article 4, Arizona Revised Statutes, is repealed from and after December 31, 2016, at which time any unexpended or unencumbered monies in the Arizona job training fund attributable to the job training employer tax imposed pursuant to section 23-769, Arizona Revised Statutes, revert to the unemployment compensation fund established by section 23-701, Arizona Revised Statutes, and any unexpended or unencumbered monies in the Arizona job training fund not attributable to the job training employer tax imposed pursuant to section 23-769, Arizona Revised Statutes, revert to the state general fund.

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