Business Exit Interview Act Exposed

The Business Exit Interview Act was adopted by ALEC's Commerce, Insurance, and Economic Development Task Force at the Spring Task Force Summit on April 23, 2010, approved by the ALEC Board of Directors on June 3, 2010.

CMD's Bill Summary

This bill would require a state agency to survey employers that leave the state to identify the reasons for their departure. Some have criticized bills like this for contributing to the intra-state competition for marginal, transient employers rather than building and supporting the stable employers that remain in the state.

ALEC Bill Text

Summary

To require the Department of Development to compile a report of companies that relocated out of this state and to attempt to determine the motivation behind the relocations.

Model Policy

Section 1. {Short Title.}

This Act may be cited as the Business Exit Interview Act.

Section 2.

(A) The director of development shall compile a report identifying companies formerly based in [insert state] that, beginning five years ago, relocated outside of this state. Information to be included in the report shall include, but not be limited to, all of the following:

(1) The name of the departed or departing company;

(2) The line of business in which the company was or is engaged;

(3) Location from which the company departed or is departing;

(4) Location to which the company departed or is departing;

(5) The date of the relocation;

(6) Reasons for the company’s relocation;

(7) Overhead the company contributed to [insert state], such as employment, tax base, or community service;

(8) Costs [insert state] incurred due to the company, such as tax incentives or nuisance;

(9) Any financial incentives the company received to move;

(10) Any other information the director of development believes will help create a model of relocations of companies that are departing or have departed this state.

(B) The director of development shall develop a questionnaire that may be submitted to and returned by companies that have relocated, or that are relocating, outside of this state to acquire the information required to be included in the report, including the reasons that the companies have decided to leave [insert state].

(C) Upon completion of the report, the director shall submit a copy of the report to the president, minority leader, and clerk of the senate and to the speaker, minority leader, and clerk of the House of Representatives.

Section 3. {Severability Clause.}

Section 4. {Repealer Clause}

Section 5. {Effective Date}

Adopted by the Commerce, Insurance, and Economic Development Task Force at the Spring Task Force Meeting on April 23, 2010.

Approved by the ALEC Board of Directors on June 3, 2010