Arizona Secretary of State - Ken Bennett


 
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TITLE 20. COMMERCE, FINANCIAL INSTITUTIONS, AND INSURANCE

CHAPTER 1. ARIZONA COMMERCE AUTHORITY


Supp. 12-2

Authority: A.R.S. § 41-1505.05

Editor’s Note: Title 20, formerly Commerce, Banking, and Insurance, is now Commerce, Financial Institutions, and Insurance. This change became effective when the Banking Department underwent a name change (now Department of Financial Institutions) under the authority of A.R.S. § 6-110, originally enacted as Laws 2004, Ch. 188, effective January 1, 2006 (Supp. 06-1).

20 A.A.C. 1, transferred from the Department of Commerce to the Arizona Commerce Authority under Laws 2011, 2nd Spec. Sess., Ch. 1 (Supp. 12-1).

20 A.A.C. 1, consisting of R20-1-101 through R20-1-106 recodified from 4 A.A.C. 47, consisting of R4-47-101 through R4-47-106 pursuant to R1-1-102 (Supp. 95-1).

Title 4, Chapter 47 transferred from Title 2, Chapter 14 pursuant to Laws 1984, Ch. 318, §§ 12, 13, and 15 (Letter from the Department of Commerce requesting this transfer received by the Secretary of State’s Office, June 24, 1994) (Supp. 94-2).

ARTICLE 1. ADMINISTRATION

Section

R20-1-101. Renumbered

R20-1-102. Renumbered

R20-1-103. Renumbered

R20-1-104. Renumbered

R20-1-105. Renumbered

R20-1-106. Renumbered

R20-1-107. Repealed

R20-1-108. Renumbered

R20-1-109. Renumbered

R20-1-110. Renumbered

R20-1-111. Renumbered

R20-1-112. Repealed

R20-1-113. Repealed

R20-1-114. Repealed

R20-1-115. Repealed

R20-1-116. Renumbered

R20-1-117. Renumbered

R20-1-118. Renumbered

R20-1-119. Renumbered

R20-1-120. Repealed

ARTICLE 2. ARIZONA JOB TRAINING PROGRAM

Article 2, consisting of Sections R20-1-201 through R20-1-206, repealed effective October 15, 1998 (Supp. 98-4).

Article 2, consisting of Sections R20-1-201 through R20-1-206, renumbered from Article 1, Sections R20-1-101 through R20-1-106 (Supp. 95-4).

Section

R20-1-201. Definitions

R20-1-202. Employer Eligibility for a Program Grant

R20-1-203. Determination of Qualifying Wage Rate

R20-1-204. Grant Program Application: Net New Employee; Incumbent Employee

R20-1-205. Grant Award Funding General Provisions

R20-1-206. Net New Employee Program Grant Award Process

R20-1-207. Incumbent Employee Program Grant Award Process

R20-1-208. Matching Fund Requirement

R20-1-209. Use of Funds for Project Costs

R20-1-210. Program Contract

R20-1-211. Program Monitoring: Reimbursement Process; Site Visits

R20-1-212. Final Grant Disbursement; Repayment Provision

R20-1-213. Final Evaluation Form

R20-1-214. Legal and Contractual Remedies

ARTICLE 3. EMERGENCY EXPIRED

Article 3, consisting of Sections R20-1-301 through R20-1-310, expired under A.R.S. 41-1026(D), effective August 6, 2010 (Supp. 12-1).

Article 3, consisting of Sections R20-1-301 through R20-1-310, made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1).

Article 3, consisting of Sections R20-1-301 through R20-1-309, expired February 5, 2002 after being in effect 180 days under A.R.S. § 41-1026(D) (Supp. 03-3).

Article 3, consisting of Sections R20-1-301 through R20-1-309, made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3).

Section

R20-1-301. Emergency Expired

R20-1-302. Emergency Expired

R20-1-303. Emergency Expired

R20-1-304. Emergency Expired

R20-1-305. Emergency Expired

R20-1-306. Emergency Expired

R20-1-307. Emergency Expired

R20-1-308. Emergency Expired

R20-1-309. Emergency Expired

R20-1-310. Emergency Expired

ARTICLE 4. EXPIRED

Article 4, consisting of Sections R20-1-401 through R20-1-406, expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

Article 4, consisting of Sections R20-1-401 through R20-1-406, made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2).

Section

R20-1-401. Expired

R20-1-402. Expired

R20-1-403. Expired

R20-1-404. Expired

R20-1-405. Expired

R20-1-406. Expired

ARTICLE 5. RECODIFIED

Article 5, consisting of Sections R20-1-501 through R20-1-514, recodified to 8 A.A.C. 3, Article 1 under Laws 2010, Ch. 208, at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

Article 5, consisting of Sections R20-1-501 through R20-1-514, made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3).

Article 5, consisting of Sections R20-1-501 through R20-1-507, expired August 26, 2001 after 180 days under A.R.S. § 41-1026(D) (Supp. 01-3).

Article 5, consisting of Sections R20-1-501 through R20-1-507, adopted by emergency rulemaking under A.R.S. § 41-1026 at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1).

Section

R20-1-501. Recodified

R20-1-502. Recodified

R20-1-503. Recodified

R20-1-504. Recodified

R20-1-505. Recodified

R20-1-506. Recodified

R20-1-507. Recodified

R20-1-508. Recodified

R20-1-509. Recodified

R20-1-510. Recodified

R20-1-511. Recodified

R20-1-512. Recodified

R20-1-513. Recodified

R20-1-514. Recodified

ARTICLE 6. RESERVED

ARTICLE 7. ARIZONA MAIN STREET PROGRAM

Section

R20-1-701. Definitions

R20-1-702. Communities Accredited Before the Effective Date of this Article

R20-1-703. Accreditation Prerequisites

R20-1-704. Annual Application Period

R20-1-705. Application for Main Street Program Accreditation

R20-1-706. Application Processing and Time-frames

R20-1-707. Scoring Applications for Accreditation

R20-1-708. Department Responsibilities

R20-1-709. Continuing Accreditation Requirements

R20-1-710. Eligibility for Program Grants

R20-1-711. Revocation of Accreditation

R20-1-712. Appeals

ARTICLE 8. EXPIRED

Article 8, consisting of Sections R20-1-801 through R20-1-812, expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

Article 8, consisting of Sections R20-1-801 through R20-1-812, made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1).

Section

R20-1-801. Expired

R20-1-802. Expired

R20-1-803. Expired

R20-1-804. Expired

R20-1-805. Expired

R20-1-806. Expired

R20-1-807. Expired

R20-1-808. Expired

R20-1-809. Expired

R20-1-810. Expired

R20-1-811. Expired

R20-1-812. Expired

ARTICLE 1. ADMINISTRATION

R20-1-101. Renumbered

Historical Note

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-101 (Supp. 94-2). R20-1-201 recodified from R4-47-101 (Supp. 95-1). Former Section R20-1-101 renumbered to R20-1-201, new Section adopted effective December 14, 1995 (Supp. 95-4). Amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-201 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-102. Renumbered

Historical Note

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-102 and references to the Office of Economic Planning and Development changed to reflect the Department of Commerce (Supp. 94-2). R20-1-202 recodified from R4-47-102 (Supp. 95-1). Former Section R20-1-102 renumbered to R20-1-202, new Section adopted effective December 14, 1995 (Supp. 95-4). Amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-204 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-103. Renumbered

Historical Note

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-103 (Supp. 94-2). R20-1-203 recodified from R4-47-103 (Supp. 95-1). Former Section R20-1-103 renumbered to R20-1-203, new Section adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-104 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-202 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-104. Renumbered

Historical Note

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-104 (Supp. 94-2). R20-1-204 recodified from R4-47-104 (Supp. 95-1). Former Section R20-1-104 renumbered to R20-1-204, new Section adopted effective December 14, 1995 (Supp. 95-4). Former Section R20-1-104 renumbered to R20-1-103; new Section R20-1-104 made by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-206 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-105. Renumbered

Historical Note

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-105 (Supp. 94-2). R20-1-205 recodified from R4-47-105 (Supp. 95-1). Former Section R20-1-105 renumbered to R20-1-205, new Section adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-106 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-208 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-106. Renumbered

Historical Note

Adopted as an emergency effective December 22, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-6). Former emergency adoption now adopted effective March 18, 1981 (Supp. 81-2). Transferred from R2-14-106 (Supp. 94-2). R20-1-206 recodified from R4-47-106 (Supp. 95-1). Former Section R20-1-106 renumbered to R20-1-206, new Section adopted effective December 14, 1995 (Supp. 95-4). Former Section R20-1-106 renumbered to R20-1-105; new Section R20-1-106 renumbered from R20-1-109 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-209 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-107. Repealed

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section made by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section repealed by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-108. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-116 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-210 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-109. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Former Section R20-1-109 renumbered to R20-1-106; new Section R20-1-109 renumbered from R20-1-117 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-211 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-110. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-118 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-212 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-111. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed; new Section renumbered from R20-1-119 and amended by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3). Section renumbered to R20-1-213 by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-112. Repealed

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-113. Repealed

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-114. Repealed

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-115. Repealed

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-116. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-108 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-117. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-109 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-118. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-110 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-119. Renumbered

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section renumbered to R20-1-111 by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

R20-1-120. Repealed

Historical Note

Adopted effective December 14, 1995 (Supp. 95-4). Section repealed by final rulemaking at 7 A.A.R. 3227, effective July 12, 2001 (Supp. 01-3).

ARTICLE 2. ARIZONA JOB TRAINING PROGRAM

R20-1-201. Definitions

The following definitions apply to this Article unless context otherwise requires:

“Applicant” means an employer or a consortium that submits an application to the Department for a program grant.

“Area” means a regional economy that, depending on a particular industry and company operations, could encompass more than one county or include a country other than the United States.

“Cluster industry” has the meaning prescribed under A.R.S. § 41-1543(8).

“Consortium” means:

A group of at least two employers excluding any contracted training provider that combines effort to meet common training needs according to:

A specific occupational category, or

Current industrial trend;

A professional or trade association or a joint apprenticeship training committee that is composed of a majority of businesses eligible to participate under this Article; or

A small business development center.

“Council” means the Governor’s Council on Workforce Policy.

“Corporate headquarters” means the location of an entity’s principal administrative office if the entity is authorized to do business in any other state in addition to this state.

“Department” has the meaning prescribed under A.R.S. § 41-1501(1).

“Director” has the meaning prescribed under A.R.S. § 41-1501(2) and may also include the Director’s designee.

“Employee” means a full-time or part-time hourly or salaried employee of an employer that resides in this state.

“Employer” means an entity that:

Has at least one business location in this state;

Has a unique FEIN;

Is not a subsidiary of a business with an active grant under this Article; and

Is not a public agency as defined under A.R.S. § 11-951.

. “Enterprise Zone” means a business zone established according to the provisions of A.R.S. Title 41, Chapter 10, Article 2 of this Chapter.

“Equipment” means the value of the following items prorated during the time used for training under a grant:

Machinery that has verifiable annual depreciation; or

Computer hardware or software purchased after a project start date.

“FEIN” means federal employer identification number.

“Export-oriented industry” means an industry that imports money into an area through the sale of goods and services to customers who do not live in the area.

“Grant” means funds set aside by the Department for an employer as reimbursable project costs and the employer’s match credit costs as required under R20-1-208.

“Hourly employee” means an employee paid by work hour.

“Incumbent” means an employer’s full-time or part-time employee or vacant position existing on the date of application.

“In-kind expenditure” means a non-cash expense incurred after a grant’s start date for training provided under the program including expenses for:

Goods,

Services,

Technical assistance,

Machinery,

Tools,

Equipment,

Training space, or

Trainee wages paid by a small business or a business in a rural area.

“Management fee” means an employer’s grant administration cost.

“Match credit costs” means costs that are not eligible to be paid by program funds under this Article but are used in determining the total grant amount and in meeting the employer’s contribution requirement as prescribed by A.R.S. § 41-1541(D).

“Micro-business” means an employer with 25 or fewer employees.

“Net new jobs” means:

The total number of employees at the end of a project that is in excess of the number of employees listed on an employer’s payroll before the application date under R20-1-204; or

The number of employees at the end of a project that is in excess of the number of employees listed on an employer’s payroll before any layoffs or force reductions occurring during the 18-month period before the application date under R20-1-204.

“Officer” means a member of an employer’s corporate board of directors.

“On-the-job training” means training of a trainee by the employer’s employee while the employee performs regular job activities if the trainee:

Assists the employee,

Receives instruction from the employee, or

Performs job activities under the employee’s supervision.

“Owner” means a person that holds greater than five percent equity in a business.

“Part-time job” means a position that requires an employee to work fewer than 30 hours per week.

“Program” means the Arizona job training program.

“Program funds” means funds that come directly from the Arizona Job Training Fund and are awarded to an employer for reimbursement of training costs.

“Project” means a specific, customized training effort established under this Article for an employer to provide training authorized by the program and proposed for a grant.

“Project start date” means the date the Director signs a contract as prescribed under R20-1-210.

“Qualified training provider” means an educational institution listed in A.R.S. § 41-1541(F) or an individual or entity, including the employer, who has a written statement from the employer attesting to the trainer’s competence to provide training for job-specific skills.

“Qualifying wage rate” means the wage rate set by the Council pursuant to R20-1-203.

“Reimbursable costs” are costs that are eligible to be paid for by program funds under this Article.

“Rural area” has the meaning prescribed under A.R.S. § 41-1544(I).

“Salaried employee” means a person compensated at a fixed weekly, monthly, or annual amount not calculated from number of hours worked.

“Site visit” means a Department inspection of a location where a qualified training provider conducts job training or inspection of financial records related to the job training.

“Small business” has the meaning prescribed under A.R.S. § 41-1544(I)(2).

“Small business development center” means a partnership between the state’s ten community college districts and the U.S. Small Business Administration.

“Training” means job skill instruction intended to upgrade specific employee skills:

For an employee’s current specific job performance, or

For a promotional job opportunity.

“Training plan” means information submitted to the Department under R20-1-204(A)(6).

“Urban” means any area not defined as rural.

Historical Note

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-201 renumbered from R20-1-101 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-202. Employer Eligibility for a Program Grant

A. An employer is eligible for a program grant under this Article if the employer:

1. Pays employees as prescribed under A.R.S. § 41-1543(3) and R20-1-203;

2. Is paying into the Arizona job training fund at the time of reimbursement or is exempt under A.R.S. § 23-769(C); or

3. Is a rural non-profit organization exempt from federal unemployment tax under Section 501(c)(3) of the Internal Revenue Code that:

a. Opts for unemployment tax reimbursement; and

b. Provides documentation to the Department that:

i. Indicates that the geographical area where the organization is located has a shortage of skilled workers; and

ii. Proposed training will increase the number of skilled workers in the geographical area.

B. In addition to the requirements of subsection (A), an employer or a member of a consortium as defined under R20-1-201 is eligible for:

1. A net new employee program grant if it can demonstrate that it is adding net new jobs within the state; or

2. An incumbent employee program grant if it is intending to provide training under the program for incumbent employees.

Historical Note

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-202 renumbered from R20-1-103 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-203. Determination of Qualifying Wage Rate

A. For purposes of A.R.S. §§ 41-1542(B)(6) and 41-1543(3), the Governor’s Council on Workforce Policy in collaboration with the Department shall determine the qualifying employee wage rate for an applicant employer under R20-1-204. The Council and Department shall determine and apply the qualifying wage rate based on the following criteria:

1. Location by county,

2. Number of employees, and

3. Other relevant economic factors.

B. The Council and the Department shall not determine a qualifying wage rate that is:

1. Less than 30 percent above minimum wage,

2. More than 50 percent above unemployment wage rates excluding the mining industry and government, and

3. Ten percent more than the previous year’s qualifying wage rate.

C. A qualifying wage rate set under this Section is effective on:

1. July 1 of each fiscal year, or

2. An alternate date approved by the Council.

Historical Note

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-204. Grant Program Application: Net New Employee; Incumbent Employee

A. On a form provided by the Department, a program applicant shall provide the following information:

1. Applicant company information:

a. Company name;

b. Any applicable doing business as (DBA) name;

c. Full address;

d. Names of principal owners;

e. Grant administrator name and title;

f. Telephone number;

g. Fax number;

h. E-mail address; and

i. FEIN;

2. Applicable parent company information:

a. Parent company name;

b. Full address;

c. Fax number;

d. Official contact; and

e. FEIN;

3. Whether the applicant listed under subsection (A)(1) is:

a. A corporate headquarters,

b. A research and development facility,

c. An export-oriented industry, or

d. A micro-business;

4. The nature of the business or services the applicant provides;

5. The following information for positions to be trained:

a. Job title;

b. Number of positions;

c. Average annual wage before proposed training; and

d. Projected annual average wage after proposed training;

6. Proposed program specifications and supporting documentation:

a. Total estimated training costs including the company’s matching funds required under R20-1-208;

b. The applicant’s training budget that meets the requirements of R20-1-209(E);

c. Proposed training course description;

d. Name, address, and telephone number of any person or entity that will design or provide customized training; and

e. A description of the applicant’s need for customized employee training;

7. The number of current employees:

a. In this state; and

b. Company-wide if a parent company and Arizona subsidiary possess only one FEIN;

8. Whether the applicant attempted to acquire training funds from any source in the 180-day period before program application;

9. Any other information required by the Department; and

10. The signature of the applicant company’s designated official that verifies:

a. The applicant will maintain or increase current training expenditures apart from any granted program funds;

b. Any training provider under subsection (A)(5)(d) is competent to provide job-specific training skills as proposed;

c. Consent to provide any additional financial information required by the Department; and

d. All application information and supporting documentation is true, correct, and complete on the date of submission.

B. In addition to the requirements of subsection (A), an applicant for a net new employee program grant shall provide the following to the Department:

1. The number of net new full-time and part-time employees the employer agrees to hire and train throughout the grant period after program grant award;

2. Whether there were layoffs or force reductions in the 18-month period before application and if so:

a. The number of positions eliminated;

b. The date of elimination; and

c. A description of the type of positions eliminated.

C. In addition to the requirements of subsection (A), an applicant for an incumbent employee program grant shall provide to the Department the total number of full-time and part-time incumbents the employer agrees will receive training throughout the grant period after program grant award.

Historical Note

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-204 renumbered from R20-1-102 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-205. Grant Award Funding General Provisions

A. The Department shall not award a grant to an employer meeting eligibility criteria as prescribed under R20-1-202 unless sufficient funds are available in the Arizona job training fund.

B. The Department may award a qualified employer under this Article both an active net new employee grant and an incumbent employee grant at the same time, but the total amount of any combined grant funding shall not exceed ten percent of the estimated annual total of monies deposited in the Arizona job training fund.

C. Except for any funding limitation prescribed under A.R.S. § 41-1544, the Department shall award program grants under this Article in the order that the Department receives an applicant’s complete application package as prescribed under R20-1-204.

D. The Department shall base the maximum allowable grant amount awarded under this Article on the applicant employer’s sliding scale score calculated under R20-1-206(B) for a net new employee program or R20-1-207(B) for an incumbent employee program.

E. The Department shall award a maximum allowable grant amount as follows:

1. For an employer with 100 or more employees:

a. Located in an urban area: from $2,000 to $5,000 per employee; or

b. Located in a rural area: from $5,000 to $8,000 per employee; or.

2. For an employer with fewer than 100 employees or that is located in an enterprise zone: from $5,000 to $8,000 per employee.

F. The Department shall not award a program grant for an amount greater than stated on an applicant employer’s training plan.

G. The Department shall approve or deny an employer’s training plan within 60 days of Department receipt of the plan.

Historical Note

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-206. Net New Employee Program Grant Award Process

A. Sliding scale for maximum allowable grant amount calculation. The Department shall assign points based on an employer’s application rounded to the nearest whole number based on the following factors:

1. Industry or facility type. An employer shall receive 20 points if the employer is one or more of the following:

a. An export-oriented industry,

b. A corporate headquarters,

c. A research and development facility,

d. A cluster industry, or

e. A micro-business.

2. Wage level. The average wage level of an employer’s net new jobs shall be at least as high as the qualifying wage rate prescribed under R20-1-203. The Department shall award points as follows:

a. 20 points if the average annual wage of all net new employees is 100 to 105 percent of the qualifying wage rate;

b. 30 points if the average annual wage of all net new employees is 106 to 110 percent of the qualifying wage rate;

c. 40 points if the average annual wage of all net new employees is 111 to 120 percent of the qualifying wage rate;

d. 50 points if the average annual wage of all net new employees is 121 to 130 percent of the qualifying wage rate; or

e. 60 points if the average annual wage of all net new employees is 131 percent or greater than the qualifying wage rate;

3. Large employer positions. The Department shall award points under this subsection for an employer with 100 or more employees according to the number of net new jobs created. If the Department awards points under this subsection, the Department shall not award points under subsection (A)(4).

a. 10 points if the employer creates 25 or fewer jobs;

b. 20 points if the employer creates 26 to 50 jobs;

c. 30 points if the employer creates 51 to 75 jobs;

d. 40 points if the employer creates 76 to 100 jobs; or

e. 50 points if the employer creates 101 or more jobs.

4. Small employer positions. The Department shall award points under this subsection for an employer with fewer than 100 employees according to the number of net new jobs created. If the Department awards points under this subsection, the Department shall not award points under subsection (A)(3).

a. 10 points if the employer creates five or fewer jobs;

b. 20 points if the employer creates six to 10 jobs;

c. 30 points if the employer creates 11 to 15 jobs;

d. 40 points if the employer creates 16 to 20 jobs; or

e. 50 points if the employer creates 21 or more jobs.

B. Minimum points and grant amount. The Department shall:

1. Award the minimum per employee amount as specified in R20-1-205(E) to an employer with a score of at least 20 points; and

2. Increase the per employee grant amount by $27.27 for each point exceeding 20 points.

Historical Note

Renumbered from R20-1-101 effective December 14, 1995 (Supp. 95-4). Repealed effective October 15, 1998 (Supp. 98-4). New R20-1-206 renumbered from R20-1-104 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-207. Incumbent Employee Program Grant Award Process

A. Sliding scale for maximum allowable grant amount calculation. The Department shall assign points based on an employers’ application rounded to the nearest whole number based on the following factors:

1. Industry or facility type. An employer shall receive 20 points if the employer is one or more of the following:

a. An export-oriented industry,

b. A corporate headquarters,

c. A research and development facility,

d. A cluster industry, or

e. A micro-business.

2. Average trainee incumbent-worker pay increase. An employer may receive a maximum of 80 points based on the average wage increase at the end of training to incumbent employees trained as follows:

a. 20 points if the average wage increase is five percent or less;

b. 40 points if the average wage increase is six to ten percent;

c. 60 points if the average wage increase is 11 to 15 percent; and

d. 80 points if the average wage increase is 16 percent or greater.

B. Minimum points and grant amount. The Department shall:

1. Award the minimum per employee amount as specified in R20-1-205(F) to an employer with a score of at least 20 points; and

2. Increase the per employee grant amount by $37.50 for each point exceeding 20 points.

Historical Note

New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-208. Matching Fund Requirement

A. An employer receiving funding for net new training shall provide at least 25 percent of the cost of project training with cash or in-kind expenditures.

B. An employer receiving funding for incumbent training shall provide at least 50 percent of the cost of project training with cash or in-kind expenditures.

Historical Note

New Section renumbered from R20-1-105 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-209. Use of Funds for Project Costs

A. An employer awarded a grant under this Article shall restrict use of program funds to employee job-specific training.

B. An employer shall use a grant:

1. To train employees at a level that maintains or exceeds the level of employer training expenditures excluding grant funds for the 12-month period of operation in this state before the application date; and

2. To supplement, not replace, the employer’s existing training expenditures.

C. An employer shall not use program funds to train a full-time or part-time employee that is:

1. Temporary;

2. Employed under a contract;

3. Employed by a professional employment organization unless the employer applying for a grant can meet the reporting requirements as prescribed under R20-1-211.

D. The Department shall not approve grant funds for reimbursement of the following employer costs:

1. Trainee wages or fringe benefits;

2. Trainer fringe benefits;

3. Employer cost to complete a program application;

4. Expense for recruiting an employee;

5. Training expense for an employer officer or partner;

6. A signing bonus;

7. Food and beverage;

8. Expense for relocating an employee;

9. Course development or training development that is not part of the training to be provided under the employer’s approved training plan;

10. Expense for assessing the training needs of an employer’s employee;

11. Drug or other testing for employee screening or prescreening purposes;

12. Conference or seminar not resulting in a skill certificate; or

13. Trade show expense.

E. Eligible costs. To receive grant funding under either the net new or incumbent employee program, an employer shall include the following costs, as applicable, in a training plan as defined under R20-1-201:

1. Reimbursable costs:

a. Training program design and development;

b. Training material purchase and production;

c. Charges assessed by a qualified training provider;

d. Training facility rental expense;

e. On-the-job training costs that include:

i. Up to 25 percent of the base wage for an employer’s employee who provides on-the-job training to a trainee under a grant program; or

ii. If greater than 25 percent, the documented portion of the time an employer’s employee provides on-the-job training to a trainee under a grant program; and

f. Travel costs excluding food and beverage that do not exceed ten percent of the grant amount:

i. For a qualified training provider who travels to perform onsite employee training; or

ii. For employee offsite travel for training not to exceed 50 percent of the actual travel cost.

2. Match credit costs:

a. Equipment and machinery;

b. Training space at an employer’s place of business used during training;

c. Trainee wages, excluding employee benefits, paid by a small business or a business located in a rural area during training; or

d. Related training that is not job specific, including time, stress, or life management training classes.

F. An employer shall not incur or contract for any cost eligible under subsection (E) before the applicable program’s start date.

Historical Note

New Section renumbered from R20-1-106 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-210. Program Contract

A. For an approved training plan, the Department shall prepare and provide to the applicant a contract that specifies:

1. Grant award terms and conditions that include:

a. Scope of work. Sets forth the number and the average annual salary of the full-time and part-time net new employees to be trained or the number and the average annual salary of the full-time or part-time incumbent employees to be trained;

b. Reimbursement of contractor. Sets forth the process by which the employer will be reimbursed for training services provided and for other incurred eligible expenses;

c. Right to assurance. Sets forth procedure by which a party may seek adequate assurance of the other party’s intent to perform under the contract.

d. Termination. Sets forth terms and conditions under which the Department may terminate a contract;

e. Cancellation. Sets forth the procedure by which the Department may cancel a contract pursuant to A.R.S. § 38-511;

f. Arbitration. Provides that the contract is subject to arbitration only to the extent required by A.R.S. § 12-1518;

g. Applicable law. Provides that disputes arising out of the contract or concerning the contract shall be governed by Arizona law;

h. Relationship of parties. Provides that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other;

i. Assignment-delegation. Provides that no right or interest in the contract shall be assigned without prior written permission of the Department and that no delegation of any duty under the contract shall be made without prior written permission of the Department;

j. Subcontractors. Requires advance written approval of the Department prior to entering into a subcontract with any other party to furnish any of the training services specified in the contract;

k. Rights and remedies. Provides that no provision in the contract shall be construed, expressly or by implication, as a waiver by the Department of any existing or future right or remedy available by law in the event of any claim of default or breach of contract;

l. Indemnification. Provides that the contracting party agrees to indemnify, defend, save and hold harmless the State of Arizona and any jurisdiction or agency issuing permits for any work included under the contract;

m. Overcharges by antitrust violations. Provides that the contracting party shall assign to the State of Arizona any and all claims for overcharges resulting from antitrust violations as to the goods or services used to fulfill the contract to the extent permitted by law;

n. Records. Sets forth length of time that the contractor shall retain and shall require subcontractors to retain, all books, accounts, reports, files, and other records relating to the acquisition of and the performance and completion of the contract;

o. Accounting principles. Provides that the contractor agrees to maintain, in accordance with standard accounting principles and practices, books, records, documents and other evidence that sufficiently and properly reflect performance of the contract;

p. Audit. Sets forth rights and obligations if State audit exceptions are made relating to the contract;

q. Adjustment to payments. Sets forth procedure for making adjustments to payments due to material default in the performance of any obligation under the contract;

r. Non-availability of funds. Provides that every payment obligation of the state under the contract is conditioned upon the availability of funds;

s. Program monitoring. Provides that the contracting party agrees to meet with the Department at reasonable intervals and provide the Department with all required forms necessary to review the work and progress of the activities of the contractor;

t. Non-discrimination. Mandates that the contracting party shall not discriminate against employees or prospective employees due to age, sex, handicap, race, religion or national origin; and

u. Modification. Sets forth the procedure for modifying approved training plans;

2. That the project shall not exceed 24 months from project start date;

3. Responsibilities of each party; and

4. Amount of grant and amount of contractor’s match requirement.

B. The applicant shall within 30 days after receipt of the contract:

1. Sign the contract, and

2. Return the original contract and a completed State of Arizona Substitute W-9 Form to the Department.

C. The Department shall extend the time under subsection (B) for an additional 15 days if the Department receives a written request for an extension during the 30-day period.

D. If an applicant fails to comply with the time-frame required under subsection (B) or as extended under subsection (C), the Department shall require the applicant to submit another original application as prescribed under R20-1-204.

E. The Department shall not reimburse a contracted employer for costs or obligations incurred before the project start date or before the date a modification is approved.

Historical Note

New Section renumbered from R20-1-108 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-211. Program Monitoring: Reimbursement Process; Site Visits

A. Filing requirements.

1. An employer under contract with the Department shall file a quarterly reimbursement request with the Department even if no training has occurred;

2. Notwithstanding R20-1-211(A)(11), an employer may submit an invoice at any time but no later than 180 days from:

a. The date of the invoiced expense; or

b. Completion of the project, whichever is earlier.

B. Reimbursement request format. A grant recipient shall submit each reimbursement request required under subsection (A) on a form provided by the Department that shall include:

1. The following information for net new and incumbent employee programs:

a. Specific training completed during the reporting period;

b. For each employee trained under the program grant:

i. Name;

ii. Racial or ethnic background;

iii. Position title;

iv. Actual annual wage;

v. Hire date; and

vi. Any applicable termination date;

c. Reimbursement request information:

i. A copy of each applicable outside vendor invoice that details training provided or products purchased;

ii. An Arizona Unemployment Tax and Wage Report (UC-018) cover sheet; and

iii. Evidence documenting that the employer contributed the required match prescribed under R20-1-208; and

d. A certification under the employer’s signature that all information submitted to the Department is true, correct, and complete.

2. The following program-specific information:

a. Net new employee:

i. Number of net new jobs created during the reporting period; and

ii. Number of new employees trained; or

b. The number of incumbent employees trained.

C. Required site visit. The Department shall conduct at least one site visit of the employer’s place of business during the grant period and before the Department makes the final disbursement of funds to the employer.

Historical Note

New Section renumbered from R20-1-109 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-212. Final Grant Disbursement; Repayment Provision

The Department shall determine the amount of a final grant disbursement to an employer contracted under this Article based on whether the contracted employer has met all contract terms and conditions during the contract period.

1. If the Department determines a contracted employer has met all contract terms and conditions, the Department shall make the final grant disbursement.

2. If the Department determines a contracted employer has not met all contract terms and conditions, the Department shall:

a. Make a reduced final grant disbursement for an amount based on the contracted employer’s actual performance.

b. Not make a final grant disbursement; or

c. Send written notification to the contracted employer requiring full or partial repayment of any amount owed under the contract.

Historical Note

New Section renumbered from R20-1-110 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-213. Final Evaluation Form

A. Unless an earlier submission time-frame is required as prescribed under subsection (C), an employer contracted under this Article shall submit a final evaluation form provided by the Department within 90 days after contract completion date and before the Department makes a final grant disbursement. The form shall include:

1. Information for both net new and incumbent employee programs:

a. Date;

b. Employer information:

i. Name;

ii. Address;

iii. Telephone number;

iv. Fax number; and

v. E-mail address;

c. Name of a principal contact person;

d. Actual training start and completion dates;

e. Number of Arizona employees at the project start date; and

f. The signature of the contracted employer’s chief executive officer or highest-ranking official to verify that all information is true, correct, and complete at the time of submission to the Department.

2. Additional information specific to the net new employee program:

a. The number of net new full-time and part- time positions the employer agreed to hire and train;

b. Average hourly wage for all positions subject to training; and

c. The actual number of net new full-time and part-time positions hired and trained under the grant; and

3. Additional information specific to the incumbent employee program:

a. The number of incumbent workers the employer agreed to train;

b. Average hourly wage for all positions subject to training; and

c. The actual number of incumbent workers trained under the grant.

B. Required attachments to the final evaluation form.

1. A contracted employer shall attach a list of new employees hired and trained or incumbent workers trained under the project from the start date through the end date. The employer shall include the following for each employee, if applicable:

a. Hire date;

b. Termination date;

c. Name;

d. Job title;

e. Actual annual wage; and

f. Racial or ethnic background; and

2. An Arizona Unemployment Tax and Wage Report (UC-018) cover sheet.

C. The Department shall require submission of all information under subsection (A) and (B) within ten days after the Department’s action if the Department terminates an employer’s grant because of the employer’s failure to meet any term or condition prescribed under R20-1-210.

Historical Note

New Section renumbered from R20-1-111 and amended by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

R20-1-214. Legal and Contractual Remedies

Protests and appeals concerning the award or proposed award of a grant shall be initiated and resolved under 2 A.A.C. 7, Article 9.

Historical Note

New Section made by final rulemaking at 10 A.A.R. 2681, effective June 8, 2004 (Supp. 04-2).

ARTICLE 3. EMERGENCY EXPIRED

R20-1-301. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-302. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-303. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-304. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-305. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-306. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-307. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-308. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-309. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 7 A.A.R. 3836, effective August 10, 2001 for 180 days (Supp. 01-3). Section expired February 5, 2002 (Supp. 03-3). New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

R20-1-310. Emergency Expired

Historical Note

New Section made by emergency rulemaking at 16 A.A.R. 388, effective February 8, 2010 for 180 days (Supp. 10-1). Section expired under A.R.S. § 41-1026(D), effective August 6, 2010 (Supp. 12-1).

ARTICLE 4. EXPIRED

R20-1-401. Expired

Historical Note

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

R20-1-402. Expired

Historical Note

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

R20-1-403. Expired

Historical Note

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

R20-1-404. Expired

Historical Note

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

R20-1-405. Expired

Historical Note

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

R20-1-406. Expired

Historical Note

New Section made by final rulemaking at 7 A.A.R. 1771, effective April 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 880, effective February 28, 2006 (Supp. 06-1).

ARTICLE 5. RECODIFIED

Article 5, consisting of Sections R20-1-501 through R20-1-507, expired August 26, 2001 after 180 days under A.R.S. § 41-1026(D) (Supp. 01-3).

R20-1-501. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-101 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-502. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-102 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-503. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-103 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-504. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-104 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-505. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-105 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-506. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-106 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-507. Recodified

Historical Note

New Section adopted by emergency rulemaking at 7 A.A.R. 1311, effective February 27, 2001 (Supp. 01-1). Section expired August 26, 2001 under A.R.S. § 41-1026(D) (Supp. 01-3). New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-107 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-508. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-108 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-509. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-109 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-510. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-110 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-511. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-111 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-512. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-112 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-513. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-113 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

R20-1-514. Recodified

Historical Note

New Section made by final rulemaking at 11 A.A.R. 2957, effective July 12, 2005 (Supp. 05-3). Section recodified to R8-3-114 under Laws 2010, Ch. 208 at 18 A.A.C. 848, effective March 15, 2012 (Supp. 12-1).

ARTICLE 6. RESERVED

ARTICLE 7. ARIZONA MAIN STREET PROGRAM

R20-1-701. Definitions

In addition to the definitions in A.R.S. § 41-1501, the following definitions apply to this Article unless the context otherwise requires:

“Accreditation” or “accredited” means designated by the Department for participation in the Main Street program.

“Commercial district” means a specific physical location in which goods and services are bought and sold within a community.

“Community” means a rural city or town that has an identifiable commercial district.

“Historic asset” means a person, place, or thing that has significance to the members of a community.

“Main Street program” means the technical services, networking, training, and grant opportunities provided by the Department to an accredited community to assist the community with economic development within the context of historic preservation.

“Metropolitan Phoenix” means the following municipalities:

Avondale,

Carefree,

Cave Creek,

Chandler,

El Mirage,

Fountain Hills,

Gilbert,

Glendale,

Goodyear,

Guadalupe,

Litchfield Park,

Mesa,

Paradise Valley,

Peoria,

Phoenix,

Scottsdale,

Sun City,

Sun City West;

Surprise,

Tempe,

Tolleson, and

Youngtown.

“Metropolitan Tucson” means the following municipalities:

Marana,

Oro Valley,

Tucson, and

South Tucson.

“Program” means the Arizona Main Street program authorized by A.R.S. § 41-1505.

“Program manager” means the individual authorized by the governing organization to represent an accredited community or a joint community and nonprofit organization seeking accreditation and who maintains contact with the Department.

“Rural” means having a population of less than 50,000 according to the most recent U.S. decennial census and located outside of metropolitan Phoenix and metropolitan Tucson.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-702. Communities Accredited Before the Effective Date of this Article

A. A community accredited before the effective date of this Article is eligible for continued accreditation only if the community has done the following within the 12 months before the effective date of this Article:

1. Participated in at least two conference calls, retreats, or other events scheduled by the Department;

2. Submitted an annual report as described in R20-1-709(F);

3. Notified the Department regarding program changes; and

4. Attended at least one financial or economic development conference sponsored by the Department.

B. To continue accreditation, the program manager of a community that is eligible under subsection (A) shall provide to the Department written notice of intent to continue participation within 45 days after the effective date of this Article.

C. The Department shall issue a written notice of accreditation under this Article to the program manager of a community that is eligible under subsection (A) and provides the notice required under subsection (B). The Department shall issue a written notice of revocation of accreditation to the program manager of a community that is not eligible under subsection (A) or does not provide the notice required under subsection (B).

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-703. Accreditation Prerequisites

A. If a community that does not meet the requirements of R20-1-702, the Department shall consider the community for accreditation only if the community complies with the competitive application requirements of this Article.

B. The Department shall not accept an application for accreditation from a community unless the community designates a program manager.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-704. Annual Application Period

A. The Department shall announce the annual application period and deadline for application for Main Street program accreditation by written notice to all communities in the state.

B. The Department shall include in its written notice the maximum number of communities that will be accredited during the application period.

C. At least 45 days before the application period, the Department shall conduct a pre-application workshop to provide information on the program and application requirements.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-705. Application for Main Street Program Accreditation

A. To apply for accreditation, the program manager shall submit to the Department an original and four copies of the following:

1. A completed application form, which is available from the Department, that provides the information required under subsection (B);

2. The narrative listed in subsection (C);

3. The supporting documents listed in subsection (D); and

4. If desired, the supporting materials listed in subsection (E).

B. The program manager shall provide the following information on the application form:

1. Information about the program manager:

a. Name,

b. Title,

c. Name of the organization employing the program manager,

d. Mailing address,

e. Telephone and fax numbers,

f. E-mail address, and

g. Signature;

2. Information about the community:

a. Name of community;

b. County in which community is located;

c. Population change over the last 20 years;

d. Form of local government; and

e. Whether the local government has agencies, ordinances, or plans supportive of economic development and historic preservation and if so, detailed information regarding the agencies, ordinances, and plans;

3. Information about the commercial district:

a. Number of square blocks in the commercial district;

b. Number of buildings in the commercial district;

c. Number of businesses in the commercial district;

d. Whether any properties within the commercial district are listed on the national or local historic register and if so, identification of each property;

e. Whether properties within the commercial district are subject to a local historic preservation ordinance and if so, identification of each property; and

f. Description of cultural features or special qualities of the commercial district.

C. The program manager shall submit a narrative containing:

1. The reasons for seeking program accreditation;

2. What the community expects to achieve through program participation;

3. An identification of any other organization within the community that supports economic development or historic preservation and the manner in which the other organization was informed about this application;

4. A proposed budget for the program that demonstrates sustainability for three to five years;

5. The organizational structure for the program including to whom the program manager will report and the names and types of businesses and organizations that will participate;

6. A statement whether the community received economic development or historic preservation funds from another governmental unit within the last three years and if so, how the funds were used and what results were achieved; and

7. A statement whether the community has participated in other federal, state, or local economic development or historic preservation programs within the last three years and if so, the names of the programs and the results of the participation.

D. The program manager shall submit the following supporting documents:

1. A map with an outline of the commercial district, clearly showing names and locations of all streets;

2. A zoning map of the commercial district;

3. The resolution supporting program participation passed by the governing entity for the community;

4. If applicable, the bylaws of all non-profit organizations having an agreement for program participation with the community; and

5. If applicable, a copy of the written agreement between the community and all non-profit organizations regarding joint participation in the program.

E. The program manager may submit letters and resolutions of support for program participation from merchants, property owners, community organizations, and other stakeholders.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-706. Application Processing and Time-frames

A. Within 45 days of the application deadline under R20-1-704, the Department shall perform an administrative review of each application and provide each program manager with written notice stating whether the application is accepted for scoring or rejected. The Department shall include with any notice of rejection the reason that the application did not meet the requirements of R20-1-705. The Department shall not accept another application from that community until the next application period.

B. The Department shall score all completed applications within 90 days of the close of the administrative review period, using the criteria in R20-1-707 to determine which communities to accredit.

C. At the end of the 90 days under subsection (B), the Department shall provide written notice of the score to communities and advise whether they have been accredited.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-707. Scoring Applications for Accreditation

The Department shall use the criteria in this Section to score an application for accreditation from an eligible community. The Department shall score each criterion using a scale of zero to 10 points. The Department shall accredit the communities receiving the highest score, up to the maximum established under R20-1-704.

1. How well defined is the community’s expectation of and plan for participating in the Main Street program?

2. To what extent does the community have a well defined commercial district?

3. What is the potential for the Main Street program to affect the community’s economic development and historic preservation efforts?

4. To what extent is there evidence of support for Main Street program participation from both the public and private sectors?

5. To what extent does the community demonstrate capacity for economic growth?

6. To what extent does the community demonstrate a historic preservation ethic?

7. To what extent does the commercial district contain historic or architecturally significant buildings capable of establishing the community’s social or cultural identity?

8. To what extent does the community’s proposed Main Street program budget demonstrate sustainability for three to five years?

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-708. Department Responsibilities

A. Except for communities accredited under R20-1-702, the Department shall conduct an onsite evaluation within one year of accrediting a community and issue a written report containing findings and recommendations.

B. The Department shall publish at least annually a schedule of conference calls, trainings, meetings, conferences, and other events available and required to maintain accreditation. The Department shall include in the schedule the dates grants may become available for accredited communities. The Department shall make the schedule available during business hours and post it on the Department’s web site, www.azcommerce.com.

C. The Department shall provide a minimum of 40 hours of training annually for accredited communities on any of the following topics:

1. Redevelopment of declining commercial districts,

2. Reuse of existing properties and lands,

3. Sustainability of commercial districts,

4. Methods of fundraising,

5. Non-profit organization effectiveness,

6. Real estate,

7. Finance, or

8. Other topics requested by Main Street program communities.

D. The Department shall compile data from the reports provided by accredited communities under this Article into an annual document that goes to the national Main Street organization and may be used by accredited communities.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-709. Continuing Accreditation Requirements

A. To remain accredited, a community shall meet the participation and reporting requirements of this Section.

B. An accredited community shall authorize a new program manager within 15 days after a vacancy occurs in the program manager position. The accredited community shall provide immediate written notice to the Department of the new program manager’s name, mailing address, e-mail address, and telephone and fax numbers.

C. In each year, an accredited community shall designate at least one representative to participate in at least 85% of the conference calls, trainings, meetings, conferences, and other events scheduled by the Department under R20-1-708.

D. An accredited community shall annually submit to the Department a letter indicating whether the community intends to continue participating in the Main Street program.

E. No later than September 1 of each year, an accredited community shall provide to the Department annual reinvestment information as defined by the National Main Street Center.

F. At the end of each program year, as identified in the accredited community’s bylaws, an accredited community shall submit a report to the Department including:

1. Program operating budget for the upcoming year;

2. Goals and objectives for the upcoming year;

3. Schedule of Main Street-related events for the upcoming year;

4. Prior year accomplishments;

5. Current list of members of the board of directors for the Main Street program; and

6. Name, address, and telephone and fax numbers of the program manager.

G. An accredited community shall submit a report to the Department by the last business day of April, July, October, and January, containing:

1. The name of the accredited community and the period covered;

2. The name, telephone number, and e-mail address of the contact person for the report;

3. Major accomplishments during the reporting period;

4. Barriers met during the reporting period;

5. Other issues impacting the program;

6. Changes in the program’s board of directors;

7. Changes, if any, in the boundaries of the program area, with:

a. A resolution approving the changes from the community’s governing entity and the program board of directors, and

b. A street map showing the current program boundaries.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-710. Eligibility for Program Grants

A. Except as provided in subsection (B), an accredited community may apply for grant funding according to the schedule under R20-1-708. The Department shall award grants, when funding is available, under the procedures in A.R.S. § 41-2701 et seq.

B. The Department shall suspend an accredited community’s eligibility for grants if the accredited community fails to meet the requirements of R20-1-709. The Department shall provide written notice to the community’s governing entity and the program manager explaining the requirement that must be met and allowing 30 days from the date of the written notice for the accredited community to comply. If the accredited community does not comply by the date specified in the notice, the Department shall provide written notice to the program manager that grant eligibility is suspended until compliance is achieved and provide notice for revocation of accreditation under R20-1-711.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-711. Revocation of Accreditation

A. The Department shall provide written notice to the community’s governing entity and the program manager of any accredited community that fails to comply with R20-1-709 for more than 120 days. The Department shall include a copy of this Section with the notice.

B. The program manager may provide the Department with a written statement of intent to maintain accreditation within 60 days of the date of the Department’s notice under subsection (A).

C. If the Department does not receive the statement of intent to maintain accreditation described in subsection (B), the Department shall provide written notice to the community’s governing entity and the program manager that the community is no longer accredited. To become accredited again, the community shall meet all of the competitive application requirements of this Article.

D. If the program manager provides a statement of intent to maintain accreditation as described in subsection (B), the accredited community has 120 days from the date of the statement to be in full compliance with R20-1-709.

E. If the accredited community is not in full compliance with R20-1-709 within the 120 days provided under subsection (D), the Department shall provide written notice to the community’s governing entity and the program manager that the community is no longer accredited. To become accredited again, the community shall meet all of the competitive application requirements of this Article.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

R20-1-712. Appeals

A. The community’s governing entity or the program manager of an accredited community whose accreditation is revoked or whose eligibility for grant funding is suspended by the Department may file an appeal with the Department by submitting a letter to the Director providing the reason for appealing the decision within 30 working days after the date on the written notice.

B. The Director shall review the substance of the appeal and respond in writing within 30 working days after receiving the appeal letter.

C. An appeal of the Director’s decision is conducted under A.R.S. Title 41, Chapter 6, Article 10, and the rules established by the Office of Administrative Hearings.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 3031, effective October 6, 2007 (Supp. 07-3).

ARTICLE 8. EXPIRED

R20-1-801. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-802. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-803. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-804. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-805. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-806. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-807. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-808. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-809. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-810. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-811. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).

R20-1-812. Expired

Historical Note

New Section made by final rulemaking at 13 A.A.R. 1038, effective May 5, 2007 (Supp. 07-1). Section expired under A.R.S. § 41-1056(E) at 18 A.A.R. 975, effective March 31, 2012 (Supp. 12-2).


Scott Cancelosi
Director
Public Services Division

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Arizona Administrative Code