WHEREAS, Arizona’s strong and growing economy is creating thousands of new jobs in the State, and more Arizonans are currently employed than at any point in our State’s history; and

WHEREAS, Arizona is a leading state for critical industries and private investment; our State’s continued growth and rise as the epicenter of America’s manufacturing resurgence and innovation economy means more Arizonans will need newer and updated skills to meet industry demand and make the most of these economic opportunities—from making leading-edge chips to implementing new, clean technologies, to connecting all Arizonans to high-speed internet; and

WHEREAS, workforce opportunities should be available for all Arizonans, including those that have been traditionally underserved or deserve a second chance, such as Tribal communities, women, families with children, Arizonans living with disabilities, and individuals who are justice-impacted and reentering the workforce; and

WHEREAS, my administration has prioritized creating jobs in growing industries that are important for the State’s future—such as advanced manufacturing, skilled construction trades, clean energy jobs, broadband, telecommunications, and information technology, early childhood education and childcare, aerospace and defense, health care, and cybersecurity—as well as programs that connect Arizonans to the skills and trainings they need to realize these opportunities for successful careers; and

WHEREAS, by 2030, according to Arizona’s Office of Economic Opportunity, Arizona will need to fill at least 400,000 jobs, including 26,000 new manufacturing jobs, 20,000 new jobs in the construction trades, 12,000 new clean energy jobs, 16,000 new broadband, telecommunications, and information technology jobs as well as jobs supporting cybersecurity, 1,500 new jobs in early childhood education and childcare, 3,000 new jobs in aerospace and defense, and 76,000 in healthcare; and

WHEREAS, inequities continue across specific populations in Arizona, as labor force participation among Arizona Veterans is 49 percent, compared to the statewide participation rate of 62 percent; the current unemployment rate for Tribal members living in Arizona is 8 percent—more than double the statewide rate for all workers; the national unemployment rate among justice-impacted individuals is estimated to be approximately 27 percent; of the nearly half a million Arizona adults ages 16 to 64 living with a disability, half are not in the workforce; and women in Arizona earn 87 cents on the dollar compared to men and continue to be underrepresented in key sectors and the workforce overall; and

WHEREAS, since taking office, I have launched strategic initiatives working across agencies, partners, and sectors—such as the BuildItAZ Apprenticeship Initiative to double registered apprentices in skilled construction trades by 2026, Future48 Workforce Accelerators and ReadyTechGo to partner with industry and community colleges to connect Arizonans with good jobs in our growing advanced manufacturing sectors, the Community College Workforce Scholarship program to foster workforce training and education, and the Semiconductor Technician Apprenticeship Initiative, to further Arizona’s leadership as the chips capital of the United States, among many other workforce efforts; and

WHEREAS, my Administration has emphasized the importance of the Workforce Arizona Council—representing private industry, community and labor organizations, and local and state government agencies from across the State—to shape Arizona workforce policy and help guide the workforce vision for our state; and

WHEREAS, multiple state agencies, educational institutions, and community leaders and organizations play essential roles in providing essential and top-rate workforce development services; and

WHEREAS, coordination and intentional alignment among key agencies and partners, starting at the state level with my Administration, in partnership with local leaders and directed by the vision of the Workforce Arizona Council, will better support Arizonans in every community across the State in building their skills, facilitating on-the-job-training, obtaining postsecondary degrees and certifications in order to secure good-paying job opportunities, and creating new and more accessible career pathways; and

WHEREAS, Article 5, Section 4 of the Arizona Constitution and Title 41, Chapter 1, Article 1, of the Arizona Revised Statutes vest the executive power of the State of Arizona in the Governor, and the Governor supervises the official conduct of all executive and ministerial officers pursuant to A.R.S. § 41-101(A)(1); and

WHEREAS, the Governor may require officers to produce information in writing pursuant to Article 5, Section 4 of the Arizona Constitution and A.R.S. § 41-101(A)(10).

NOW, THEREFORE, I, Katie Hobbs, Governor of the State of Arizona, by virtue of the power vested in me by the Arizona Constitution and the laws of this State, hereby order and direct as follows:

1. The Talent Ready AZ Initiative is created to meet Arizona’s workforce needs, support Arizona’s growing and critical industries, provide Arizonans with good-paying jobs, and connect Arizonans to the careers of the future and long-term success.
2. A Workforce Cabinet is created within my administration to implement and coordinate actions, policies, programs, and engagement across state government to meet Arizona’s workforce needs and help create opportunities for every Arizonan, in line and in consultation with the mission, vision, goals, and strategies set by the Workforce Arizona Council.
3. To the extent practicable and permissible under state and federal law, State Agencies shall allocate at least one percent of competitive and formula federal program funds toward on-the-job training and workforce development efforts, where appropriate and allowable, for programs with annual funds to the state exceeding $1,000,000, including but not limited to investments in Broadband, Highway Infrastructure, and Resiliency, with programmatic support from the Office of Economic Opportunity.
4. State Agencies shall prescribe and prioritize workforce development practices, including on-the-job training, in agencies’ program solicitations, grant agreements, contracts, and applications for funding, where allowable.
5. To the extent practicable and permissible under state and federal law, State Agencies shall provide workforce data, including data on licensure, to the Office of Economic Opportunity to further the work of the state Workforce Data Task Force, pursuant to A.R.S. § 41-5404, and the state Integrated Data System, managed by the Office of Economic Opportunity. The Office of Economic Opportunity shall pursue data-sharing agreements with State Agencies and provide data and analytical support, as necessary for developing the State’s workforce strategy and supporting the Arizona Commerce Authority in its business recruitment, growth, and retention strategies, pursuant to A.R.S. § 41-5303.
6. To create a full and up-to-date inventory of state workforce programs and support greater alignment and effectiveness across state workforce efforts, the Governor’s Office of Strategic Planning and Budgeting shall require State Agencies to highlight and adopt standard reporting for all programs that relate to workforce development, as part of the master list of state programs pursuant to A.R.S. 35-122, to further the alignment and effectiveness of State of Arizona workforce programs.
7. The following State Agencies, offices, commissions, and employees shall be members and designate a liaison to the Workforce Cabinet:
   1. Arizona Office of Economic Opportunity
   2. Arizona Commerce Authority
   3. Arizona Department of Economic Security
   4. Arizona Health Care Cost Containment System
   5. Arizona Department of Health Services
   6. Arizona Department of Homeland Security
   7. Industrial Commission of Arizona
   8. Arizona Registrar of Contractors
   9. Arizona Department of Transportation
   10. Arizona Office of Tourism
   11. Arizona State Broadband Office, under the Arizona Commerce Authority
   12. Governor’s Office of Resiliency
   13. Arizona Department of Corrections, Rehabilitation & Reentry
   14. Arizona Department of Veterans’ Services
   15. Governor’s Office on Tribal Relations
   16. Governor’s Office of Youth, Faith and Family
   17. Arizona Commission of African-American Affairs
   18. Governor’s Office of Diversity, Equity, Inclusion, and Accessibility
   19. Other State Agencies, offices, commissions, and employees may be added, as deemed necessary and appropriate by the Governor.
8. The Workforce Cabinet shall be co-chaired by the Governor, or her designee, and the leaders of the Office of Economic Opportunity, Arizona Commerce Authority, and Department of Economic Security, or their designees, as agencies responsible for leading the State’s economic workforce strategy, industry alignment, and workforce development and support system, respectively. Membership of the Workforce Cabinet may change in accordance with workforce needs and administration priorities, at the discretion of the Governor.
9. The duties of the Workforce Cabinet include and are not limited to:
   1. Designing and implementing workforce strategies in targeted workforce sectors to help Arizonans realize employment opportunities and fill gaps in high-demand industries, as recommended and outlined under A.R.S. § 41-5401 by the Workforce Arizona Council.
   2. Advising the Governor and Workforce Arizona Council on the status, opportunities, and challenges in implementing state workforce strategies to meet the State’s workforce needs.
   3. Creating a landscape analysis of existing workforce efforts, private and public, and identifying gaps or areas for increased efficiency and collaboration.
   4. Advancing statewide strategies to reach underrepresented and underserved populations and supporting programs that reach communities all across Arizona.
   5. Identifying additional funding sources to support the administration’s workforce vision, including but not limited to federal grants, partnerships with Local Workforce Development Boards, and through public-private partnerships.
   6. Defining metrics to track the progress of the Workforce Cabinet’s efforts in pursuit of the Governor’s vision and meeting workforce needs.
   7. Reporting on workforce development funding, projects, and progress in reaching workforce targets.
   8. Aligning workforce needs with necessary education and training, and coordinating with relevant community partners to ensure education pathways exist for all Arizonans, including a focus on traditionally underserved and other priority populations.
   9. Creating policy and implementation recommendations, as needed.
   10. Identifying and involving stakeholders in the implementation of this work.
   11. Other activities as defined by the Governor.
10. The Workforce Cabinet will submit an annual report, as developed by the Office of Economic Opportunity, supplementing annual reporting required in A.R.S. § 41-5401 and 20 C.F.R. § 679.130, to the Governor on the Workforce Cabinet’s progress towards meeting workforce needs in strategic areas.
11. The Workforce Cabinet may create working groups, as needed, to identify and implement workforce initiatives and as directed by the Governor.
12. For the purposes of this Executive Order, the term “State Agency” shall include, without limitation, all executive departments, agencies, offices, and all State boards and commissions and any employee, officer, or other person acting on their behalf, except for: (a) any State agency that is headed by a single elected State official; (b) the Corporation Commission; and (c) any board or commission established by ballot measure during or after the November 1998 general election.
13. This Executive Order shall not confer any legal rights or remedies upon any person and shall not be used as the basis for legal challenges to any action or inaction of a State Agency, officer, employee, or agent thereof.
14. If any provision of this Executive Order or its application to any person or circumstance is held invalid by any court of competent jurisdiction, such invalidity does not affect any other provision or application of this Executive Order which can be given effect without the invalid provision or application. To achieve this purpose, the provisions of this Executive Order are declared to be severable.
15. This Executive Order shall take effect immediately upon signature, and shall remain in effect until repealed, replaced, or rescinded by future Executive Order.