SB 1703 Summary

• Establishes requirements for development subsidies (at least $25,000 in public funds or tax benefits to 100 or fewer entities) including bonds, grants, loans, tax credits, and fee waivers.

• Requires granting bodies to cross-check job creation data against unemployment insurance records or conduct periodic audits by outside auditors.

• Mandates recapture or rescission of subsidies if recipient corporations fail to achieve job creation and wage/benefits obligations within 2 years, or fail to maintain those achievements for the subsidy duration or 5 years (whichever is longer).

• Allows pro-rata reduction of subsidies for shortfalls in job creation and wages, with full rescission effective January 1 if a company falls short by 25 percent or more for three consecutive years.

• Permits Arizona taxpayers and taxpayer organizations to sue in superior court to compel enforcement if granting bodies fail to enforce the law, with prevailing parties awarded attorney fees and costs.