A. The Arizona job training fund is established consisting of legislative appropriations, 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.

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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 fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations, except that:

1. Monies in the fund may not be encumbered from and after December 31, 2020.

2. Monies in the fund that are unencumbered on January 1, 2021 revert to the state general fund.

3. All monies remaining in the fund on June 30, 2022 revert to the state general fund.

C. The 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 workforce Arizona council.

D. A minimum of twenty-five percent of the monies appropriated to the 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 fund shall be used to provide training to businesses located in rural areas of this state.

F. If a business receives monies for training from the 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. Not more than fifty percent of the monies in the fund shall be used to provide incumbent worker training.

H. A single grant awarded pursuant to this article may not be more than one million three hundred thousand dollars.

I. The authority may 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.

(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.

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