SB 1575 Summary

• Establishes a recapture and rescission framework for development subsidies (grants, loans, tax credits, etc. valued at $25,000 or more) awarded to businesses by state and local government entities.

• Requires granting bodies to verify job creation claims through cross-checking against unemployment insurance records or conducting periodic audits by outside auditors.

• Triggers recapture or rescission of subsidies if recipient corporations fail to meet job creation and wage/benefit obligations within two years, fail to maintain wages and benefits for the subsidy duration or five years (whichever is longer), or if their corporate parent reduces Arizona employment below 90 percent of baseline levels.

• Mandates pro rata reduction of subsidies based on shortfalls in job creation and wage obligations; requires full rescission effective January 1 following the third consecutive year of at least 25 percent job creation shortfall or corporate parent employment reduction below 90 percent threshold.

• Allows Arizona taxpayers and taxpayer organizations to bring civil actions to compel enforcement if granting bodies fail to enforce the chapter, with courts awarding reasonable attorney fees and costs to prevailing parties.