SB 1592 Summary

• Establishes a comprehensive framework requiring applicant corporations to complete a standardized application form developed by the Department of Economic Opportunity to receive any economic development subsidy valued at $25,000 or more.

• Prohibits granting bodies from providing economic development subsidies if the cost per job created exceeds $35,000, calculated by dividing subsidy amount by the number of full-time jobs expected to be created.

• Requires recipient corporations to maintain wages equal to or exceeding 85 percent of average wages for their industry (or 75 percent for small businesses) and mandates annual progress reports documenting job creation, wages, health care coverage, and employment compliance.

• Establishes default procedures requiring recipient corporations to repay subsidies on a pro rata basis if they fail to meet job creation or wage requirements within 2 years, and requires full repayment if defaults occur for 3 consecutive years.

• Directs the Department of Revenue to annually submit a unified economic development budget to the Legislature documenting all state and local economic development expenditures, tax credits, and subsidies over $5,000, with penalties of $500-$1,000 per day for corporations failing to provide required information or access.