A.R.S. tit. 41 ch. 53 — Arizona Revised Statutes Title 41 Chapter 53 — Office Of Economic Opportunity

41-5301. Definitions In this chapter, unless the context otherwise requires: 1. "Director" means the director of the office. 2. "Office" means the office of economic opportunity. 41-5302. Office of economic opportunity; funds A. The office of economic opportunity is established. B. The director is responsible for the direction, operation and control of the office. C. The governor shall appoint the director of the office pursuant to section 38-211 to serve at the pleasure of the governor. D. The office of economic opportunity operations fund is established consisting of monies deposited pursuant to sections 44-1843, 44-1861, 44-1892, 44-3324 and 44-3325 and as otherwise provided by law. The office shall administer the fund. Monies in the fund are continuously appropriated. Monies in the fund may be used in the furtherance of the mission of the office and related economic development interests. E. The economic development fund is established consisting of monies received from the Arizona industrial development authority and the Arizona finance authority as otherwise provided by law. The office shall administer the fund. 41-5303. Powers and duties A. The director shall: 1. Monitor this state's tax and regulatory competitiveness by benchmarking this state against competitor states and municipalities, including implementing a systematic data collection and analysis process to evaluate tax and regulatory costs to businesses imposed by this state and municipalities of this state in relation to other states and municipalities. 2. Serve as this state's workforce planning coordinator, provide staffing support to the workforce Arizona council, provide stewardship of the state workforce data evaluation system, provide economic and demographic research and analysis, including constitutionally required population estimates, provide employment and unemployment estimates and develop labor market information for the development of the state workforce strategy. 3. Provide office and meeting space, administrative support and analytical support to the Arizona finance authority and coordinate with the Arizona finance authority director to incorporate finance market intelligence in economic development strategy and policy recommendations. 4. Develop data-informed policy and regulatory reform recommendations and provide assistance with state tax and regulatory matters, including the development and analysis of proposed rules and regulations and the projected cost on employers relating to those rules and regulations. 5. Provide analytical support to the Arizona commerce authority in its business recruitment, growth and retention strategies. 6. Provide analytical support to the Arizona commerce authority, the Arizona-Mexico commission in the governor's office and the office of tourism in their state marketing strategies. B. The director may: 1. Contract and incur obligations that are reasonably necessary or desirable within the general scope of the office's activities and operations to enable the office to adequately perform its duties. 2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the office. 3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter. 41-5351. Definitions In this article, unless the context otherwise requires: 1. "Agreement" means any loan or other agreement, contract, note, mortgage, deed of trust, trust indenture, lease, sublease or instrument entered into by the authority. 2. "Arizona industrial development authority" means the industrial development authority established by the Arizona finance authority. 3. "Authority" means the Arizona finance authority. 4. "Board" means the board of directors of the authority. 5. "Bonds" means any bonds issued by the authority or the Arizona industrial development authority. 6. "Costs": (a) Means all costs incurred in the issuance of bonds, including insurance policy, credit enhancement, legal, accounting, consulting, printing, advertising and travel expenses, plus any authority administrative fees. (b) May include interest on bonds for a reasonable time before and during the time the proceeds are used. 7. "Director" means the director of the authority. 8. "Federal agency" means the United States or any agency or agencies of the United States. 41-5352. Arizona finance authority; fund A. The Arizona finance authority is established in the office of economic opportunity. B. The governor shall appoint the director of the authority to serve at the pleasure of the governor. C. The Arizona finance authority operations fund is established consisting of monies deposited pursuant to section 41-5355. The authority shall administer the fund. Monies in the fund are continuously appropriated. D. At the end of the fiscal year, the authority shall transfer all unencumbered monies in the fund in excess of the authority's operating costs to the economic development fund established by section 41-5302. 41-5353. Board; members; terms; meetings; compensation; prohibition A. The authority shall be governed by a board of directors, consisting of five members to be appointed by the governor, giving due consideration to a diverse geographical representation on the board, and to serve at the pleasure of the governor. B. Excluding reappointment, before appointment by the governor, a prospective member of the board of directors shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. C. Each member shall serve for a term of three years. Vacancies occurring other than by expiration of term shall be filled in the same manner for the remainder of the unexpired term. If a term expires and a member has not been reappointed or replaced by a newly appointed member, the member may continue to serve until reappointment or until a replacement is appointed. D. The board shall annually elect from among its members a chairperson, a secretary and a treasurer. E. The board rules shall provide for regular annual meetings of the board. The chairperson may call a special meeting at any time. The board rules shall provide for a method of giving notice of a special meeting. F. The board may meet by audioconference or videoconference. The requirements of title 38, chapter 3, article 3.1 apply to an audioconference or videoconference, except that all votes of members must be by roll call. G. Members of the board are not eligible to receive compensation but are eligible to receive reimbursement for necessary expenses pursuant to title 38, chapter 4, article 2 while engaged in the performance of the members' duties. H. Members of the board may not have any direct or indirect personal financial interest in any project financed by the Arizona finance authority or the Arizona industrial development authority or otherwise under this article. 41-5354. Powers of board The board may: 1. Adopt an official seal and alter the seal at its pleasure. 2. Apply for, accept and administer grants of monies or materials or property of any kind from a federal agency or others on such terms and conditions as may be imposed. 3. Make and enter into agreements, including intergovernmental agreements pursuant to title 11, chapter 7, article 3, execute all instruments, perform all acts and do all things necessary or convenient to carry out the powers granted. 4. Employ or contract with experts, engineers, architects, attorneys, accountants, construction and financial experts and such other persons as may be necessary in the board's judgment and fix their compensation. 5. Pay compensation and employee-related expenses. 6. Fix the compensation of the director. 7. Sue and be sued. 8. Acquire and maintain office space, equipment, supplies, services and insurance necessary to administer this article. 9. Contract with, act as guarantor for or coinsure with any federal, state or local governmental agency and other organizations or corporations in connection with its activities under this article and receive monies relating to those contracts and services. 10. Adopt bylaws and administrative rules consistent with this article. 11. Protect and enforce the interests of the authority in any project financed through the authority's resources. 12. Enter into and inspect any facility financed through the authority's resources to investigate its physical condition, construction, rehabilitation, operation, management and maintenance and to examine all of the records relating to its capitalization, income and other related matters. 13. Acquire title to real property or other assets by gift, grant or operation of law, or by purchase. 14. Establish advisory boards that have all rights and powers granted by the board, including the right to review, evaluate and recommend to the board for approval proposed financings and programs. 41-5355. Assets; cost of operation and administration; taxation A. Any monies, pledges or property issued or given to the Arizona finance authority, whether by appropriation, loan, gift or otherwise, constitute the assets of the Arizona finance authority. B. This state is not responsible for any obligation incurred by the authority. C. All costs and expenses of the Arizona finance authority shall be paid from bond proceeds of bonds issued by any industrial development authority established by the Arizona finance authority or other monies of the Arizona finance authority, and to the extent not prohibited by state or federal law or by contract, the monies of the greater Arizona development authority that are available to pay the Arizona finance authority's costs and expenses. D. The authority and its income are exempt from taxation in this state. 41-5356. Duties of board; annual report A. The board shall: 1. Establish the Arizona industrial development authority under title 35, chapter 5 and, notwithstanding the requirements of section 35-705, serve as the board of the Arizona industrial development authority. 2. Serve as the board of the greater Arizona development authority and have all powers and authority to take action on behalf of the greater Arizona development authority pursuant to chapter 18 of this title. 3. Approve the Arizona finance authority's budget. B. On or before October 1 of each year, the Arizona industrial development authority shall submit a report to the president of the senate, the speaker of the house of representatives and the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting regarding the Arizona industrial development authority's revenues, expenditures and program activity for the previous fiscal year. 41-5357. Supplemental law The powers conferred by this article are in addition and supplemental to the powers conferred by any other law, general or special, and are deemed full authority for the issuance of bonds, for entering into agreements in connection therewith and for the authorization, issuance and sale of bonds pursuant to this article and without regard to the procedure required by any other such law, except as provided for in title 44, chapter 12, article 4. 41-5401. Workforce Arizona council; duties; report A. The governor by executive order shall establish a workforce Arizona council and appoint members to the council consistent with 29 United States Code section 3111. B. The workforce Arizona council that is established by executive order shall assist the governor in: 1. The development, implementation and modification of a state workforce plan. 2. The review of statewide policies and programs. The workforce Arizona council shall make recommendations to the governor on actions that should be taken to align workforce development programs in a manner that supports a comprehensive and streamlined workforce development system. 3. The development and continuous improvement of the workforce development system in this state. 4. The development and the updating of comprehensive state performance accountability measures. 5. The identification and dissemination of information on workforce best practices. 6. The development and review of statewide policies affecting the coordinated provision of services through a one-stop delivery system. 7. The development of strategies for technology improvements to facilitate access to and improve the quality of services and activities provided through a one-stop delivery system. 8. The development of strategies for aligning technology and data systems across one-stop partner programs to enhance service delivery and improve efficiencies in reporting on performance accountability measurement and reporting processes and the incorporation of local input into the design and implementation of one-stop partner programs. 9. The development of allocation formulas for the distribution of monies for employment and training activities for adults and youth workforce investment activities. C. The workforce Arizona council shall meet at least four times each year and shall submit a written annual report to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee by December 1 of each year. This report shall include: 1. Information specifying the levels of performance achieved with respect to the primary indicators of performance of workforce development programs and performance with respect to individuals with barriers to employment disaggregated by race, ethnicity, sex and age. 2. The total number of participants served by workforce development programs. 3. The number of participants who received career and training services and the amount of monies spent on each type of service. 4. The number of participants who exited from career and training services. 5. The average cost per participant of those participants who received career and training services. 6. The percentage of participants who received training services and obtained employment in a field related to the training received. 7. The number of individuals with barriers to employment served by workforce development programs. D. Each state agency and community college shall submit to the workforce Arizona council the information necessary to compile the report described in subsection C, paragraph 3 of this section by November 1 of each year. E. The workforce Arizona council shall coordinate with state agencies and state community colleges to produce outcome-based performance measures for all state workforce development programs. 41-5402. Population estimates; labor market information; powers and duties; definition A. The office shall: 1. Provide economic and demographic research and analysis, including constitutionally required population estimates, and provide employment and unemployment estimates. 2. Produce local labor market information packages and conduct labor market analyses, including special studies and job impact analyses in support of state and local employment, training, education and job creation programs and activities that support programs designed to align employer needs with the employment base to reduce unemployment and create jobs. 3. Support the development and implementation of the workforce innovation and opportunity act (P.L. 113-128; 128 Stat. 1425). B. The office may: 1. Establish mechanisms to recover actual costs incurred in producing, maintaining and providing otherwise unfunded labor market information that is aligned with all applicable federal guidelines. 2. Receive federal set-aside monies from any federal program that is authorized to fund state and local labor market information and that is required to use the information in support of the federal program. 3. Coordinate with other state agencies to study ways to standardize and enhance federal and state multiagency administrative records and information, such as unemployment insurance information, to produce the employment, training, education and economic analysis needed to improve labor market information products and services. 4. Partner with the federal government as needed in order to provide detailed employment and unemployment data, population projections and research data. C. For the purposes of this section, "labor market information" means the body of information generated from measurement and evaluation of the socioeconomic factors and variables influencing the employment process in this state and specific labor market areas. Data used for measurement and evaluation may include unemployment insurance information received according to specific data sharing agreements with the department of economic security. The socioeconomic factors and variables that affect labor demand and supply relationships include: 1. Labor force information, including unemployment, labor force participation, labor turnover and mobility, average hours and earnings and changes and characteristics of the population and labor force within specific labor market areas in this state. 2. Occupational information, including occupational supply and demand estimates and projections, characteristics of occupations, wage levels, job duties, training and education requirements, conditions of employment, unionization, retirement practices and training opportunities. 3. Economic information, including number of business starts and stops by industry and labor market area, information on employment growth and decline by industry and labor market area, employer establishment data and number of labor-management disputes by industry and labor market area. 4. Program information, including program participant or student information gathered in cooperation with other state and local agencies along with related labor market information to evaluate the effectiveness, efficiency and impact of state and local employment, training, education and job creation efforts in support of planning, management, implementation and evaluation. 41-5403. Workforce data stewardship A. The office of economic opportunity and the department of economic security shall enter into a memorandum of understanding on or before September 30, 2016 to establish that the office of economic opportunity is the designated office for this state and is responsible for fulfilling unemployment insurance data requests by entities specified in section 23-722.04, subsection A. B. The office of economic opportunity and the department of economic security in the memorandum of understanding shall establish specifications for quarterly data transmissions of unemployment insurance information to the office of economic opportunity. The initial transmission shall include all archived data available. 41-5404. Workforce data task force; membership; duties; report A. The workforce data task force is established in the office of economic opportunity to oversee workforce system evaluation data sharing. The task force shall consist of the following members: 1. The director of the office of economic opportunity, or the director's designee, who shall serve as chairperson of the task force. 2. The director of the department of economic security or the director's designee. 3. The superintendent of public instruction or the superintendent's designee. 4. The president of the Arizona board of regents or the president's designee. 5. A representative of a community college district or the representative's designee. B. The director of the office of economic opportunity may appoint advisory members to the task force as necessary. C. Members of the task force are not eligible to receive compensation. The office of economic opportunity shall provide adequate staff support for the task force. D. The task force shall: 1. Oversee development and maintenance of the state workforce evaluation data system. 2. Define and regularly review requirements, structures and methodologies for the system, including: (a) A retention schedule for unemployment insurance records that supports the longitudinal evaluation of workforce and education programs. (b) Data standards relating to unemployment insurance data, including rules for definition, format, source, provenance, element level and contextual integrity. (c) Technical requirements for the storage, handling and distribution of data. (d) System performance expectations. (e) Controls for data confidentiality and data security for unemployment data, including when data is in transmission. (f) Data quality and reporting standards. (g) Required elements for data sharing agreements that conform to relevant state and federal requirements and that establish adequacy of receiving system requirements. (h) A methodology to fund the development and ongoing database costs from existing resources of entities that have entered into current data sharing agreements pursuant to section 23-722.04. 3. Provide analyses and recommendations for all of the following: (a) Data audit management, including data quality metrics, sanctions and incentives for data quality improvement. (b) Documentation standards for data elements and systems components. (c) Data archival and retrieval management systems, including change control and change tracking. (d) Publication of standard and ad hoc reports for state and local level use on workforce system performance. 4. Submit an annual report regarding the task force's activities on or before November 1 to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of this report to the secretary of state. The initial report shall include all initial requirements, structures and methodologies determined pursuant to this section. 41-5421. Adult workforce diploma program; fund; program providers list; reporting requirements; review; definitions A. The adult workforce diploma program is established in the office of economic opportunity to assist individuals who are at least twenty-one years of age in earning high school diplomas and developing critical employability and career and technical skills to prepare the individuals for employment. The office shall administer the program. The program may be delivered in a campus-based, online or blended modality. B. The adult workforce diploma program fund is established consisting of legislative appropriations, gifts, grants and other donations. The office shall administer the fund and use monies in the fund to pay participating program providers as prescribed in subsection E of this section. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The office may use not more than five percent of the monies in the fund for the costs of administering the adult workforce diploma program. C. On or before August 15 of each year, each program provider that seeks to participate in the program shall submit to the office on a form that is developed by the office information showing that the program provider meets all of the following requirements: 1. Is operating a regionally accredited high school diploma-granting entity. 2. Is able to develop a learning plan for each student that integrates graduation requirements and career goals. 3. Provides a course catalog that includes all courses that are necessary to meet graduation requirements. 4. Is able to provide all of the following: (a) Remediation opportunities in literacy and numeracy. (b) Career pathways coursework. (c) Preparation for industry-recognized credentials and stackable credentials. (d) Career placement services. (e) Academic skills intake assessments and transcript evaluations. D. On or before October 15 of each year, the office shall place all qualified program providers that submit a form pursuant to subsection C of this section on a program providers list. Participating program providers shall begin enrolling students on or before November 15 of each year. A program provider may be removed from the program providers list only if the program provider's authorization to participate in the program is revoked pursuant to subsection J of this section. E. The office shall pay participating program providers the following amounts for each student who completes the following milestones: 1. $250 for each completed half unit of high school credit. 2. $250 for each completed employability skills certification. 3. $250 for each earned industry-recognized credential or stackable credential that requires not more than fifty hours of training. 4. $500 for each earned industry-recognized credential or stackable credential that requires more than fifty hours but not more than one hundred hours of training. 5. $750 for each earned industry-recognized credential or stackable credential that requires more than one hundred hours of training. 6. $1,000 for each earned high school diploma. F. Participating program providers shall submit monthly invoices to the office not later than the tenth calendar day of each month for milestones met in the previous calendar month. Participating program providers shall report the number of currently enrolled students for whom invoices have been submitted and the number of currently enrolled students for whom invoices have not yet been submitted together with the monthly invoices submitted pursuant to this subsection. The office shall pay participating program providers in the order in which invoices are submitted until all available monies are spent. The office shall provide a written update to the program providers on or before the last calendar day of each month that includes all of the following: 1. The aggregate total dollars that have been paid to program providers for the program year. 2. The aggregate number of currently enrolled students in this state for whom one or more invoices have been submitted. 3. The aggregate number of currently enrolled students for whom invoices have not yet been submitted. 4. The estimated number of enrollments still available for the program year. G. On or before October 30 of each year, each participating program provider shall report the following to the office: 1. The total number of students who were funded through the program. 2. The total number of earned credits. 3. The total number of earned industry-recognized credentials or stackable credentials earned for each tier of funding. 4. The total number of students who graduated through the program. 5. Information required for the performance measures adopted by the state board of education pursuant to section 15-217. H. The office shall compile the reports received from program providers pursuant to subsection G of this section and, on or before December 15 of each year, shall provide an annual report to the governor, the president of the senate, the speaker of the house of representatives and the state board of education and shall provide a copy of the report to the secretary of state. I. Beginning fiscal year 2027-2028, the office shall review data from each participating program provider to ensure that the program provider is achieving minimum program performance standards, including: 1. A graduation rate of at least fifty percent. 2. An average cost per graduate of $7,000 or less. J. The office may develop a process to bring a program provider into compliance. The office shall revoke a program provider's authorization to participate in the program if the program provider does not comply with the requirements of this section within two years. K. For the purposes of this section: 1. "Academic skills intake assessment" means a criterion-referenced assessment of numeracy and literacy skills with high reliability and validity that is determined by third-party research and that may be administered in person or online. 2. "Accredited provider" means an entity that is currently accredited by one of the seven regional accreditation organizations or any successor entity. 3. "Average cost per graduate" means the total program funding disbursed to a participating program provider divided by the total number of graduates for a cohort calculated twelve months after the close of the cohort. 4. "Career pathways coursework" means one or more courses that align with the skill needs of industries in the economy of this state or region and that assist students to enter or advance within a specific occupation or occupational cluster. 5. "Career placement services" means services that are designed to assist students in obtaining employment, including career interest self-assessments, job search skills, résumé development and mock interviews. 6. "Cohort" means the students who enter the program between July 1 and June 30 of each program year. 7. "Employability skills certification" means a certificate earned by demonstrating professional nontechnical skills through assessment and must include the program standards of the United States department of labor's "skills to pay the bills: mastering soft skills for workplace success". 8. "Graduate" means a student who has successfully completed all state and program provider requirements to earn a high school diploma. 9. "Graduation rate" means the total number of graduates from a cohort divided by the total number of students from the same cohort calculated twelve months after the close of the cohort. 10. "Graduation requirements" means course and credit requirements needed to earn a high school diploma from a program provider. 11. "High school diploma" means a diploma that is issued by an accredited provider and that is recognized as a secondary school diploma by this state. 12. "Industry-recognized credential" means an education-related or work-related credential that verifies an individual's qualification or competence and that is issued by a third party with the relevant authority to issue the credential. 13. "Learning plan" means a documented plan that both: (a) Is designed to prepare a student to succeed in the program and the student's future endeavors. (b) Identifies the courses and credits that are needed for a student to complete the program and that are graduation requirements. 14. "Milestones" means objective measures of progress for which payment is made to a program provider under this section, including earned units of high school credit, earned industry-recognized credentials and earned high school diplomas. 15. "Program" means the adult workforce diploma program. 16. "Program provider" means a public, nonprofit or other entity that meets the requirements of this section and that does not receive federal or state funding or private tuition for a student who is funded through the program. 17. "Stackable credential" means a third-party credential that is part of a sequence of credentials that can be accumulated over time to build up an individual's qualifications to advance along a career pathway. 18. "Student" means a participant in the program who is at least twenty-one years of age, who is a resident of this state and who has not earned a high school diploma. 19. "Transcript evaluation" means a documented summary of credits that students earned in previous public or private accredited high schools compared with program and program provider graduation requirements. 20. "Unit of high school credit" means a credit that is awarded based on a student's demonstration that the student has successfully met the content expectations for the credit area as defined by subject area standards, expectations or guidelines.