AZ HB2635

Amends section 41-1544 of Arizona Revised Statutes to establish that the Arizona Job Training Fund shall transfer $3 million annually to the Department of Economic Security for operating vocational rehabilitation services.

Specifies that job training fund monies (excluding the $3 million vocational rehabilitation transfer) shall be spent according to guidelines adopted by the governor's council on workforce policy.

Maintains existing requirements that a minimum of 25% of appropriated monies support training for small businesses (fewer than 100 employees) and a minimum of 25% support training for businesses in rural areas.

Prohibits more than 50% of fund monies from being used for incumbent worker training and limits single grants to no more than 10% of estimated annual fund deposits.

Lists prohibited employer costs for reimbursement including fringe benefits, recruitment bonuses, relocation expenses, and costs not part of approved training plans.