As used in this subchapter, unless the context otherwise requires:
(1) “Basic skills training” means those math, reading, English, listening, oral and written communication, and computer literacy skills that a person can reasonably be expected to have attained by the end of the twelfth grade except in the instance of potential new workforce training;
(2) “Classroom training” means instructor-led training that is provided outside the process of the production of goods or the delivery of a service;
(3)
(A) “Consortium” means a group of companies that includes at least three (3) eligible companies as defined in subdivision (4) of this section and which for fiscal purposes is either a private, not-for-profit corporation or an organized group that has a coordinating board or committee and a mission statement, that has or is in the process of developing bylaws, and that is establishing a bank account requiring at least two (2) consortium members' signatures.
(B) Consortia may have members that are not eligible companies so long as at least three (3) of the consortium member companies are eligible companies.
(C) Fifty percent (50%) of the eligible participants completing each course must be employees of eligible companies;
(4)
(A) “Eligible company” means an entity currently operating in the state that has filed a corporate income tax return for the year prior to the year in which the application was submitted and is classified in one (1) of the following ways:
(i) Manufacturers classified in sectors 31-33 under the North American Industrial Classification System as it existed on January 1, 2007;
(ii) Manufacturers classified in sectors 20-39 according to the Standard Industrial Classification standards as they existed on January 1, 2007, but which are classified in another sector under the North American Industrial Classification System as it existed on January 1, 2007;
(iii)
(a) Businesses primarily engaged in the design and development of prepackaged software, digital content production and preservation, computer processing and data preparation services, or information retrieval services.
(b) All businesses under subdivision (4)(A)(iii)(a ) shall derive at least seventy-five percent (75%) of their sales revenue from out of state;
(iv)
(a) Businesses primarily engaged in motion picture productions.
(b) All businesses under subdivision (4)(A)(iv)(a ) of this section shall derive at least seventy-five percent (75%) of their sales revenue from out of state;
(v) An intermodal facility or distribution center, if seventy-five percent (75%) of its sales revenue is from out of state;
(vi) An office sector business, if seventy-five percent (75%) of its sales revenue is from out of state;
(vii) Firms primarily engaged in commercial, physical, and biological research as classified under the North American Industry Classification System code 541710 as it existed on January 1, 2003;
(viii) A national or regional corporate headquarters as classified under North American Industry Classification System code 551114 as it existed on January 1, 2003, if the national or regional headquarters serves more than one (1) state;
(ix)
(a) A scientific and technical services business.
(b)
(1) All businesses under subdivision (4)(A)(ix)(a ) of this section shall derive at least seventy-five percent (75%) of their sales revenue from out of state.
(2)
(A) The average hourly wages paid by businesses in this group shall not exceed one hundred fifty percent (150%) of the county average hourly wage or the state average hourly wage, whichever is less.
(B) The average hourly wage threshold determined at the signing of the financial incentive agreement shall be the threshold for the term of the agreement;
(x)
(a) All building trade industries classified under North American Industry Classification System codes 236 and 238 as they existed on January 1, 2003.
(b) A business classified under North American Industry Classification System code 23899 shall not qualify as a building trade industry; and
(xi) Air transport businesses primarily engaged in aircraft maintenance, repair services, and aircraft testing as classified under North American Industry Classification System code 488190 as it existed on January 1, 2007.
(B) The Director of the Arkansas Economic Development Commission may classify a nonretail business as an eligible company if:
(i) The business receives at least seventy-five percent (75%) of its sales revenue from out of state; and
(ii) The business proposes to pay wages in excess of one hundred ten percent (110%) of the county average hourly wage or state average hourly wage, whichever is less;
(5) “Eligible recipient” means a full-time permanent employee of an Arkansas company or consortium who is subject to the Arkansas personal income tax;
(6) “Governing council” means the Director of the Arkansas Economic Development Commission, the Director of the Division of Higher Education, and the Director of the Office of Skills Development, or their designees;
(7) “Internal training” means classroom training provided to company employees by company trainers who may be either full-time employees of the company or consultants paid by the company;
(8) “Potential new workforce” means two (2) or more eligible companies with common job skill requirements requiring a minimum of fifteen (15) new employees and conducting a minimum of fifteen (15) hours of preemployment training, thereby allowing prospective employees and employers an opportunity to evaluate one another before making employment commitments; and
(9)
(A) “State-supported educational institution” means a secondary or postsecondary Arkansas educational institution that receives the majority of its funding from state or local tax revenues.
(B) However, for purposes of this subchapter, Texarkana College may be considered a state-supported educational institution for the purpose of delivering training services to eligible companies located in Miller County, if Texarkana College continues to waive out-of-state tuition for residents of Arkansas.