Accountability Legislation
This page contains a state-by-state summary of some of the most interesting subsidy accountability provisions.  Although the table is not comprehensive, it does offer a range of laws that states have considered or enacted in recent years.  Living wage laws are not included in this table.  For more information about these laws, contact the Association for Community Organizations for Reform Now (ACORN), 739 8th St. SE, Washington, DC 20003, (202) 547-2500.


STATE LAW OR BILL INFORMATION
Alabama Enterprise Zone
(§41:23:20 to 23:32)
Conditions. Targeted employment: 35 percent of employees must be zone residents or on public assistance;
Anti-relocation: Recipient cannot have reduced employment elsewhere in state.
Alabama Business Investment Tax Credit 
(Act No. 95:187)
Conditions. Job Creation: 20 new jobs (15 if small business); Wages: $8 per hour or total benefits $10 per hour.
Arizona Eligibility for economic development assistance (A.R.S. & 41:1505.07) Information. Impact Assessment: Recipient reports annually on compliance with performance standards.
Conditions. Agreement sets five-year performance standards.
Enforcement. Clawback: Agreement must contain provisions allowing state to stop, readjust or recapture assistance if company does not comply with performance standards.
California: 
Santa Clara
Manufacturing Personal Property Tax Rebate Policy: 1995 Conditions. Job Creation: 10 new jobs;  Wages and Benefits: $10 per hour and health care for full time employees.
Enforcement. Clawback: "Proportional claim reduction" if business fails to meet requirements for job creation, wages, and health care.
California:
Los Angeles
Service Contractor Worker Retention Ordinance (LA admin. code sec. 10:36) Conditions. Job retention: If recipients of more than $100,000 in aid transfer service contracts, new contractor must retain workers 90 days. 
Enforcement. City can terminate contract; Penalty: Workers can sue for back pay if not retained.
Colorado Off ice of Business Development FIRST training program policies Conditions. Job creation: Applicant estimates number of new jobs; Wages: Positions receiving training assistance must pay $8 per hour ($7 rural).
Enforcement. Clawback: Partial recapture (typically 15 percent) if business fails to meet job creation and wage projections.
Connecticut Regional Development Authority.  Conditions for Financial Assistance (title 32, ch.588n, sec. 32:277) Conditions. Environmental: Recipient's project must comply with any applicable environmental regulations as precondition for funding.
Connecticut All business incentives 
(Public Act No. 93:218) 
Information. Impact assessment: Agency must report to General Assembly on the use of anti-relocation clawbacks.
Conditions. Anti-relocation: Recipients of assistance from Connecticut Development authority cannot relocate out of state for 10 years or term of loan; cannot relocate within state unless employees offered jobs at new site.
Enforcement. Clawback: Plus 5 percent interest if business leaves state.
Connecticut An Act Concerning Defense Diversification Information. Public Participation: Defense contractors receiving state assistance must set up alternative-use committee with employer and employee representatives to prepare plan of conversion options; committee may invite public participation.
Connecticut Income Tax Credits
(Public Act No. 93:433) 
Conditions. Anti-relocation: Recipients may not transfer work (historically done by Connecticut employees) to other states if transfer decreases total wages paid in the state.
Enforcement. Recalibration: Lower tax credit if employment levels are reduced 2 percent to 6 percent; eliminate tax credit for the year if more than 6 percent.
Connecticut: 
New Haven
Benefit recapture: tax abatements and community development loans (§21:39, 21:40) Information. Right-to-know: Recipient must notify city six months prior to relocation.
Conditions. Anti-relocation: Business may not relocate during term of benefit.
Enforcement. Clawback: With interest if recipient relocates.
Georgia Job Tax Credit Program
(Georgia Code 48:7:40:40.1)
Conditions. Job creation: At least five new jobs.
Targeted hiring: 60 percent of new jobs must be filled by residents of "less developed" census tracts.
Enforcement. Cancellation: If increased employment falls below the requirement, no tax credits for year; no clawback of prior credits.
Illinois High Impact Business 
(20 ILCS 655/5.5) 
Information. Right-to-know: Recipient must show that jobs would not be created or would be created out of state in the absence of subsidies.
Conditions. Job creation: 500 new jobs;
Job retention: 1,500 new jobs.
Enforcement. Clawback and ban: If hearing determines that jobs would have been created and retained without subsidies, clawback with interest, and recipient ineligible for all state development programs for 10 years.
Illinois Community Investment Recovery Act
(740 ILCS 30/5)
Conditions. Anti-relocation: If state acquires or improves property for recipient, recipient must remain at site for 24 months.
Enforcement. Clawback: Cost of acquiring or improving property.
Indiana:
Gary
Tax Abatements
(Ordinance No. 89:45)
Information. Right-to-know: Applicants for tax abatements already doing business in Gary must give advance notice to union or employees; applicants must give city data on incentives received in Indiana in past 10 years, job creation goal, and finances.
Indiana:
Gary
Tax Abatement Criteria
(Ordinance 6560, 1991)
Information. Right-to-know: Recipient must give list of all public subsidies received in Indiana for last 10 years, including the benefits the recipient promised and those actually delivered.
Conditions. Wages: Prevailing industry wage;
Benefits: Health care for employees working 25 hours per week;
Job retention: If abatement used to relocate within Gary, all employees must have right to transfer;
Anti-relocation: Businesses may not use abatement to relocate jobs from outside Gary.
Enforcement. Cancellation: If business violates conditions.
Indiana:
Hammond
Economic Revitalization Area Abatements
(Ordinance 7292, 1990)
Information. Right-to-know: Applicants must notify collective bargaining representatives of application;
Participation: Public hearing prior to approval;
Impact assessment: Recipients report yearly on compliance with job creation and wage projections; if below 80 percent of projection, company must appear at council hearing to explain noncompliance.
Indiana:
Marion County
Real Property Tax Abatement policy: Industrial Projects for Outside Center Township
(Resolution 95:1:210, 1995)
Conditions. Job creation and retention: Specified in agreement with recipient;
Wages: Minimum $9 to $12.75 per hour (depending on location); if minimum investment of $25,000 to $125,000 per job, then wage requirement is $8.10 per hour;
Anti-relocation: Will not give abatements to businesses relocating from Indiana localities that have signed reciprocal memorandum of understanding.
Enforcement. Clawback: Full or partial recapture if recipient does not make "reasonable effort to substantially comply with all of the commitments."
Iowa Community Economic Betterment Program
(Iowa Code 261:22.13)
Conditions. Job creation: Business must create pledged number of new jobs;
Wages: Projected wages 25 percent below county average receive zero point on ranking system used to determine whether to give assistance;
Anti-relocation: Recipient may not change structure of business, sell business, shut down or relocate without permission of department.
Enforcement. Clawback with interest if less than 50 percent of pledged jobs are created; partial clawback if 50 to 100 percent of jobs are created.  Clawback with interest if anti-relocation conditions violated.
Iowa Good Neighbor Agreement Law 
(Act of May 30, 1996, Sec 96)
Information. Public participation: Companies entering good neighbor agreements with communities given extra consideration under competitive subsidy laws.
Conditions. Environment: Any negotiated environmental provisions in agreement.
Enforcement. Clawback: If company receiving subsidies violates good neighbor agreement
Kansas Corporate Income Tax Credit
(K.S.A. 74:50, 115)
Conditions. Wages: Businesses must pay wages above average for similar industry in county.
Kentucky Kentucky Industrial Development Act
(KRS 154.01:10, 154.28:100)
Information. Right-to-know: Applicants must provide evidence (including written materials) demonstrating that company will not locate in Kentucky without inducements.
Conditions. Anti-relocation: Company will not find a facility that replaces an existing facility in Kentucky.
Kentucky Kentucky Industrial Revitalization Act 
(KRS 154.01:10, 154.26 010:100)
Information. Right-to-know: Company must give data on failure, options;
Participation: Public hearing, workers vote whether to accept wage assessment.
Louisiana Enterprise Zones
(L.R.S. 51.1787)
Conditions. Targeted hiring: 35 percent of employees must be residents of zone or on public assistance.
Louisiana Louisiana Quality Jobs Program Act
(Act No. 39, First Extraordinary Session, 1996)
Information. Impact assessment: Tax credits may not exceed direct state benefits (new payroll plus tax revenues minus costs to state).
Conditions. Job creation: New jobs projected to have $1 million in payroll within three years;
Benefits: New jobs must include health benefits; 80 percent of new jobs must be full time.
Maine An Act to Encourage Accountability and Return on Investment for Maine Taxpayers from Economic Development Incentives
(L.D. 2243)
Information. Right-to-know: Companies receiving over $10,000 must report how many jobs have been created or maintained with their incentive package.
Conditions. Wages: Must pay living wage;
Benefits: Jobs must provide health and retirement benefits.
Enforcement. Clawback: If fail to create or maintain number of jobs promised, money returned to the state.
Maryland Job Creation Tax Credit
(Article 83A, subtitle 11, 5:1101 to 5:1103)
Information. Impact Assessment: Requires Department of Fiscal Services to study, report on effectiveness of program.
Conditions. Job Creation: 60 new jobs over two years;
Wages: Full time and 150 percent federal minimum wage;
Anti-relocation and poaching: Jobs shifted within state are not "new"; Governor must negotiate with neighboring state to end subsidy war.
Enforcement. Clawback: If number of jobs decreases more than 5 percent for three years after credit, recomputation of credit or clawback.
Massachusetts Single Factor Sales Tax
(General laws, ch.63, sec.38)
Information. Right-to-know and impact assessment: Companies report jobs, wages, and contracts yearly, but agency report only provides aggregate figures.
Enforcement. If employment falls below 90 percent of current level, companies have to pay normal tax rate.
Massachusetts Voluntary Standards of Corporate Behavior
(Mass. Statutes, Chapter 149, Section 182)
Information. Right-to-know/plant closings: Recipients agree to "voluntary standards of corporate behavior" that suggest 90 days minimum notice for employees for full or partial plant closings.
Michigan Michigan Economic Growth Authority Act
(Acts. No. 23, 24, 1995)
Information. Impact assessment: Agency must file yearly report to legislature including amount and duration of credit listed separately for each authorized business.
Michigan Environmental Protection Bond Implementation
(HB 5883 1994)
Information. Right-to-know: Bond recipients must demonstrate compliance with state rules, that engineer has approved plan, and that funds are sufficient to finish project.
Conditions. Targeted hiring: Bond recipients must employ Michigan residents and open subcontractor bidding to Michigan businesses unless agency certifies that no state residents are available;
Environmental: Business must demonstrate compliance with state environmental laws.
Michigan Michigan Strategic Fund
(HB 5882 1994)
Conditions. Targeted hiring: Recipients must employ state residents and open subcontractor bidding to Michigan businesses unless agency certifies that no state residents are available.
Minnesota Public Assistance to Business; Wage and Job Requirements
(Minn. Statue, Chapter 224, Sec. 58, 116J.991)
Information. Popularly known as the Corporate Welfare Reform Law; refers to subsidies as "assistance"; covers grants or loans of $25,000 or more.
Conditions. Agency providing assistance establishes wage level and job creation goals that business must meet within two years, agency must provide annual report on each subsidized business.
Enforcement. Clawback: Company repays assistance if it does not meet wage and job creation goals.
Minnesota All business assistance programs
(SF 1997 1995)
Information. Right-to-know: Bidding exemption for companies that had out-of-state offer to subsidize relocation.
Conditions. Wages: Federal poverty wage ($7.28 per hour).
Enforcement. Social costs: If wages are below poverty level, business must pay county board twice the difference between poverty wage and wage paid.
Minnesota Toxic pollutants facilities
(1995 MN H.B. 2023)
Enforcement. Clawback: Communities offering development subsidies to new facilities that handle toxic pollutants may institute clawback agreement.
Minnesota: 
St. Paul
All financial aid to businesses
(Resolution 87:77)
Information. Right-to-know: Applicants must provide employment impact statement;
Impact assessment: City collects data to assess job creation and retention;
Participation: Public hearing before any approval; company must give union or workers copy of job impact statement.
Mississippi Mississippi Business Investment Act Program
(Miss. Code Ann. § 57:6:1)
Conditions. Wages: Interest rates on loans reduced 1/2 percent for each dollar the company's hourly wage is above the state average manufacturing wage.
Mississippi Senate Bill 2320, 1995 Conditions. Job creation: 10 to 20 new jobs (depending on industry type);
Anti-relocation: Jobs relocated from one county to another do not count as new jobs;
Environmental: Hazardous waste business ineligible for credits.
Enforcement. Clawback: If employment increase falls below minimum, recipient loses all tax credits.
Nebraska 1993 Nebraska Statutes, Employment and Investment Growth Act
(1993 Nebraska Statues 77:4101)
Conditions. Investment and job creation: Investment in qualified property of at least $3 million and the creation of at least 30 jobs, or after six years from contract net gain in total value of property reaches at least $20 million.
Enforcement. Clawback: Total clawback if business fails to meet employment goals; partial recapture if business meets goals but fails to maintain them.
Nevada Business Tax Abatement
(NRS 364 A 170)
Conditions. Job creation: 75 new jobs;
Wages and benefits: Average Nevada hourly industrial wage (1996: $11.89 per hour), medical insurance.
Enforcement. Clawback with interest.
Nevada Sales and Use Tax Abatement
(NRS 374, Sec. 1)
Conditions. Job creation: 10 new jobs;
Wages and benefits: 80 percent average industrial wage, medical insurance.
Enforcement. Clawback with interest.
Nevada Sales and Use Tax Deferral
(NRS 372.397, Sec. 2)
Conditions. Job creation: 10 new jobs;
Wages and benefits: 80 percent average industrial wage and health insurance.
Enforcement. Clawback with interest.
Nevada Zones for Economic Development 
(Nev. Rev. Stat. Chapter 274.270)
Conditions. Targeted hiring: 35 percent of new employees must be zone residents, long-term unemployed, on public assistance, or handicapped;
Anti-relocation: Recipient cannot relocate from economically depressed area of state or reduce employment anywhere in state to expand in zone.
New Hampshire Reports on Economic Development Loans and Grants
(SB 57:FN 1995)
Information. Participation: Mechanism for input from employees, local officials;
Impact assessment: Study of jobs, wages for each program.
Conditions. Job creation: Important factor in grants;
Anti-relocation: Business may not transfer employment out of state; 
Environmental: Study environmental impact.
Enforcement. Clawback: For failure to create promised jobs, or if transfer 50 percent or more jobs.
New Jersey Multistate Industrial Retention Commission 
(State Assembly, No. A:1339)
Information. Impact assessment: Determine "detrimental relocations resulting in job loss and undermining labor and environmental standards. 
Enforcement. Companies committing detrimental relocations barred from state contracts, state subsidies, and pension fund investments.
New Mexico Enterprise Zone Act
(1993 Laws, Chapter 33)
Conditions. Anti-relocation: No aid for business relocating into the zone from within New Mexico, or establishing a new branch if employment reduced elsewhere in the state.
New York Employment Security and Corporate Responsibility Act 
(S. 6286, 1996)
Enforcement. Clawback: All state and local incentives agreements must contain clawback with interest provisions to enforce the goals (job creation levels, etc.) of the incentives.
New York Economic Development Zones
(L. 1990, Ch. 264)
Conditions. Job creation and retention: Business must create or retain employment;
Anti-relocation: Businesses that shift operations to an area of New York that is not an economic development zone are ineligible.
Enforcement. Revocation: Business decertified unless its failure to meet its goal is due to economic circumstances "beyond its control."
New York: 
New York City
Property Tax exemption
(Int. No. 534, 1995)
Information. Impact assessment: Annual report by recipient of jobs created;
Notice: 30 days notice if tax liability transferred.
Conditions. Job creation: Business must create jobs;
Targeted hiring: Larger tax credit for new jobs in poorer area of city;
Anti-relocation: Business may not count jobs transferred within city as new.
Enforcement. Clawback: Assessment up to total of tax credits.
North Carolina Industrial Development Bonds
(N.C. Gen Stat. § 159C:7; N.C. Admin. Code IE.0303:0306)
Information. Right-to-know and environmental: Department of Natural Resources and Community Development must determine that project will not have adverse environmental impact.  If company does not have all state permits, it must provide information on raw materials and wastes.
Conditions. Job creation: One new job per $100,000;
Wages: Average manufacturing weekly wage at facility must be above average county manufacturing wage, or 10 percent above state average manufacturing wage.
North Carolina Guidelines for the North Carolina Competitive Fund, May 1995 Information. Right-to-know: Applicant provides data on job creation and average wages.
Conditions. Job creation: Funds limited to approximately $1,000 per new job; new jobs must be created within three years of approval;
Anti-relocation: companies guarantee that new jobs were not transferred from existing North Carolina operations;
Environment: Project must have all required environmental permits.
Enforcement. Payment as conditions are met: four incremental payments as company creates 25 percent of promised jobs, then 50 percent, etc.
North Dakota Income Tax Exemption
(HB 1353, 1995)
Conditions. Anti-relocation: Business cannot relocate outside state for period equal to number of years exemptions were granted.
Enforcement. Penalty: Clawback plus 5 percent.
North Dakota North Dakota Future Fund
(ND Code, sec. 10:30.3:11)
Conditions. Wages: 100 percent of federal poverty wage in urban areas, 85 percent in rural areas and American Indian owned businesses.
Ohio Corporate Franchise and State Income Tax Credits 
( §122.17)
Conditions. Anti-relocation: Recipient must maintain operations at project location for twice the duration of credits.
Enforcement. Clawback.
Ohio Job Creation Tax Credit Conditions. Job creation: Recipient must create at least 25 new, full-time jobs within three years;
Wages: The average wage of all new employees must be at least 150 percent of the current federal minimum wage.
Business must demonstrate to the state that the tax credit is a major factor in its decision to locate in the state.
Ohio Community Development Block Grants Program Conditions. Job creation: Recipient must create at least five jobs, 51 percent of which must be for persons of low or moderate income;
Environmental: Environmental review of project.
Ohio Senate Resolution 21 introduced by state Sen. Charles Horn Information. The resolution urges Congress to support legislative initiatives to mitigate economic competition among the states. 
Oklahoma Quality Jobs Program Act
(O.S. 68, sec. 3601:3909)
Information. Right-to-know: Company must report new jobs and payroll quarterly;
Impact assessment: Agency can only subsidize locations whose benefits (new tax revenues) outweigh costs to state.
Conditions. Benefits: At least 80 percent of subsidized jobs full-time; company must provide health benefits (and pay at least 50 percent of deductible).
Oklahoma Saving Quality Jobs Act
(O.S. Ch. 332, sec. 1)
Information. Impact assessment: Agency report by 1996 on costs and benefits of program.
Conditions. Job creation: Create one new job for every threatened job subsidized.
Oregon Strategic Investment Program
(Oregon laws 1993, Chapter 737)
Conditions. Local requirements: the city or county in which a project is located may negotiate conditions, such as local hiring requirements and payments, to offset the impact of the project;
Targeted hiring: 75 percent of new employees hired must reside in Oregon; must enter first-source hiring agreement with publicly funded job training program.
Oregon Enterprise Zones
(ORS, Title 26, 285)
Conditions. Targeted hiring: If extended beyond three years, business must pay new employees 150 percent of county average wage (in Portland, pay 70 percent of new employees 150 percent of state minimum wage); must enter first-source hiring agreement with publicly funded job training program.
Pennsylvania Pennsylvania Industrial Development Authority, Statement of Policy
(Sections 303.61 to 303.65)
Conditions. Job creation: Business must meet job creation projections; 
Wages: Business must meet wage categories for job retention programs.
Enforcement. Penalties: Increase interest rate as much as 3 percent if employment goals not met; increase interest rates as much as 4 percent if wage levels not met.
Pennsylvania Job Enhancement Act
(House Bill 2668, PN 3934, June 1996)
Conditions. Job creation: Business must create 25 jobs or increase its workforce by 25 percent to be eligible for tax credits-$1,000 per full time job up to 5 years.  25 percent of all credits must go to firms employing 25 or fewer employees.
Texas Senate Bill 1557 Information. Prohibits school districts from entering into tax abatement agreements after September 1, 1997, and from increasing their level of participation in agreements prior to 9/1/97.
Texas Enterprise Zones
(Title 83, Art. 5190.7)
Information. Right-to-know: Recipient must provide job creation and wage plan.
Conditions. Targeted hiring: 25 percent of new employees must be zone residents or economically disadvantaged.
Enforcement. Decertification: If recipient fails to comply, it is barred from future abatements.
Texas:
Austin
Enterprise Zone Tax Abatements
(Ordinance 91 1121:C)
Conditions. Benefits: Business must provide health care; 10 percent additional abatements if it provides child care;
Targeted hiring: Abatements only for businesses that hire zone residents, unemployed, or persons receiving public assistance; must create and follow affirmative action plan;
Anti-relocation: Abatements for projects that transfer employment only if there will be increased investment and jobs; business cannot relocate outside Austin for twice the length of abatements;
Environment: Recipient may not violate any local, state, or federal environmental laws.
Enforcement. Clawback: If business violates any terms of abatement agreement, full or partial clawback (abated taxes become debt to city).
Vermont Tax Credits for Financing Services
(VSA Chapter 151, Sub-chapter 11, Section 5910)
Enforcement. Clawback: If employment reduced below 65 percent, state recaptures 100 percent if two years or less have passed since tax credit, 50 percent from two to four years, 25 percent from four to six years.
Vermont Mortgage Loans
(V.S.A. 264 Sec. 4 10)
Conditions. Job retention: Business may not transfer 50 percent or more of mortgaged facility's employment out of state over any three-year period.
Enforcement. Clawback: Principle and interest of mortgage become due.
Virginia Major Business Facility Job Tax Credit
(VA Code 58.1:439)
Conditions.  Job creation: 100 new jobs.
Enforcement. Clawback: If employment level drops below threshold for five years following tax credit. 
Virginia Clean Fuel Vehicle Job Creation Tax Credit 
(VA Code 58.1:439.1)
Conditions. Job creation: Employment must have increased from prior year;
Environmental: Only for manufacturers of clean fuel vehicles or technologies.
Washington All business assistance
(SBA 6479, 1996)
Information. Participation: Business assistance advisory committee with three labor, three business, and five agency members;
Impact assessment: Analysis every two years of jobs, wages, and benefits of programs.
Conditions. Job creation: Net increase in jobs within two years.
Wages and benefits: Goals set by agency.
Enforcement. Clawback: If there is no increase in employment, or wage and benefit goals are not met.
West Virginia Employee Ownership Assistance Program
(§5b:5)
Conditions. Job creation: Recipient must create and retain one job per $15,000;
Job retention: Loans only for employee ownership groups reorganizing facility faced with threat of closing, or closed less than one year.
West Virginia West Virginia Capital Company 
( §5e:1)
Conditions. Anti-relocation: Capital company must keep all financial assets in West Virginia banks, all companies capital company invests in must have 50 percent assets and employees in the state.
Wisconsin Wisconsin Housing and Economic Development Authority
(W.S. Sec. 234.65 (3)(a))
Information. Same right-to-know and impact assessment requirements as Sec. 66.521 (below) for projects financed by Housing and Economic Development Authority.
Wisconsin Municipal Revenue bonds
(W.S. Sec. 66.521)
Information.  Right-to-know: Municipalities can sign revenue agreement only if business has given its collective bargaining agent and state agency 30 days notice;
Participation: If 5 percent of registered voters sign a petition within 30 days of notice of issuance of revenue bonds, municipality must hold referendum on whether to issue bond;
Impact assessment: Business and state agency must estimate employment impact; business must submit employment impact statement after project completed.
Conditions. Anti-relocation: Municipality may not enter revenue agreement with business that has employees elsewhere in state unless business certifies it will not transfer jobs, or offers employees right to transfer to any new jobs at new site with the same wages and benefits.

This matrix of state accountability legislation is taken from "Public Subsidies, Public Accountability:  Holding Corporations to Labor and Community Standards," published by the Grassroots Policy Project, the Sugar Law Center for Economic and Social Justice and Sustainable America.  "Public Subsidies, Public Accountability" was released November 1, 1998.

To order copies of "Public Subsidies, Public Accountability" contact the Grassroots Policy Project at (202) 387-2935, email hinsons@rtk.net or send a check for $20 to:  Grassroots Policy Project, 2040 S Street, NW Suite 203 Washington, D.C. 20009.