MODEL BILLS

Minimum Standards for Subsidized Jobs Act

Summary: The Minimum Standards for Subsidized Jobs Act requires economic development subsidy recipients to meet minimum standards for job quality.

SECTION 1. SHORT TITLE

This Act shall be called the “Minimum Standards for Subsidized Jobs Act.”

SECTION 2. FINDINGS AND PURPOSE

(A) FINDINGS—The legislature finds that:

1. Every year, [state/locality] awards more than [insert amount] dollars in economic development subsidies to for-profit businesses.

2. The creation or promotion of low-paying jobs is incompatible with sustainable economic development.

3. When state-subsidized jobs provide low wages and poor benefits, they increase the need for government services, including public assistance for food, housing, health care, and childcare.

(B) PURPOSE—This law is enacted to improve the effectiveness of economic development expenditures, take pressure off state social service programs, and improve the public health and welfare by ensuring that major state subsidies are used to support adequate living standards for working families.

SECTION 3. MINIMUM STANDARDS FOR SUBSIDIZED JOBS

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITIONS—In this section:

1. “Economic development subsidy” means any expenditure of public funds with a value of at least [$100,000] for the purpose of stimulating economic development within the [state/city/county], including but not limited to bonds, grants, loans, loan guarantees, enterprise zones, empowerment zones, tax increment financing, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.

2. “Secretary” means the Secretary of the Department of [Labor], or the Secretary’s designee(s).

(B) MINIMUM STANDARDS FOR WAGES AND BENEFITS

1. No person, association, corporation or other entity shall be eligible to receive any economic development subsidy unless that entity:

a. Pays all its employees in the state a minimum wage that is at least one dollar per hour higher than the [federal/state as appropriate] minimum wage provided in [section number].

b. Offers to all its employees in the state who work at least 35 hours per week a health insurance benefits plan for which the employer pays at least 80 percent of the monthly premium, and the coverage pays at least 80 percent of the costs of physician office visits, emergency care, surgery, and prescriptions, with an annual deductible of no more than $500.

c. Has not been adjudicated to be in violation of any federal, state or local laws during the prior five years.

2. If the Secretary determines that application of this section would conflict with a federal program requirement, the Secretary, after notice and public hearing, may grant a waiver from the requirements of this section.

(C) ENFORCEMENT

1. The Secretary shall promulgate such regulations as are necessary to implement and administer compliance.

2. No person, association, corporation or other entity shall discharge, demote, harass or otherwise take adverse actions against any individual because such individual seeks the enforcement of this section, or testifies, assists or participates in any manner in an investigation, hearing or other proceeding to enforce this section.

3. No entity shall pay an employee through a third party, or treat an employee as a subcontractor or independent contractor, to avoid the requirements of this section.

SECTION 4. EFFECTIVE DATE

This Act shall take effect on XXXX 1, 20XX and shall apply to any economic development subsidy awarded or renewed on or after XXXX 1, 20XX.