The fiscal implications of the bill cannot be determined due to unknown restrictions on investing agencies that may limit the long-term return on investments, and unknown amount of tax credits, exemptions, or discounts that would no longer be obligated by the state.
The bill would prohibit a state governmental entity from investing in or purchasing obligations from a domestic private entity that, in the past two years, created employment suitable for performance in the United States in a country other than the United States, and eliminated or failed to create similar employment in the United States. Such a private entity would also be ineligible for a credit, exemption, or discount in relation to a tax or fee imposed by the state.
There could be a negative indeterminate fiscal impact to investing agencies by restricting the entities in which state funds could be invested based on noneconomic considerations, potentially limiting the long-term return on investments. Additionally, there could be a positive revenue impact to the state dependent on the amount of tax credits, exemptions, or discounts private entities would lose eligibility for under the bill's provisions. Such determinations could be labor intensive, requiring additional agency resources to make. However, without knowing what would constitute "employment suitable for performance in the United States" or "similar employment", the fiscal impact cannot be determined.
No fiscal implication to units of local government is anticipated.