Fiscal Summary

Other Fiscal Impact - Due to multiple unknown factors, the impact of the proposed legislation cannot be determined with reasonable certainty; however, any such impacts are generally thought to be positive for state and local government.

Bill Summary

Under present law, upon notifying affected employees of a reduction in operations, the employer must notify the commissioner of labor and workforce development and inform the commissioner of the circumstances of the reduction in operations, as well as the number of employees affected. This requirement applies to any person, corporation or other entity that employs at least 50 but not more than 99 full-time employees at a workplace located within this state, and that is not excluded or exempt from the requirements of the Employment Security Law.

This bill additionally requires the employer to so notify the local government where the employer is located and the commissioner of economic and community development. This bill also adds that if an employer, as defined above, received any form of financial incentive from the state or a local government to locate to this state within five years prior to the employer undergoing a reduction in operations, then all financial incentives paid, credited, or offered as an exemption must be refunded by the employer to the state or local government. This bill requires the state or local government to use refunded amounts to assist employees negatively impacted by the reduction in operations.

Generally under present law, tax information and tax administration information is confidential. This bill creates an exception to this confidentiality whereby such information will be open for public inspection if the information is relative to a financial incentive offered to a business or industry.