2024 -- S 2342 | |
======== | |
LC003568 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO TAXATION - AGREEMENT TO PHASE OUT CORPORATE INCENTIVES | |
COMPACT ACT | |
| |
Introduced By: Senator Samuel W. Bell | |
Date Introduced: February 12, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by |
2 | adding thereto the following chapter: |
3 | CHAPTER 72 |
4 | AGREEMENT TO PHASE OUT CORPORATE INCENTIVES COMPACT ACT |
5 | 44-72-1. Membership. |
6 | Any state of the United States and the District of Columbia may become a member of this |
7 | agreement/compact by enacting this agreement in substantially the following form. |
8 | 44-72-2. Definitions. |
9 | As used in this chapter: |
10 | (1) "Facility" means, but is not limited to, a headquarters, warehouse, outlet, affiliate, |
11 | office, or production facility of a company. |
12 | (2) "Party state" means a state that has enacted a statute agreeing to this compact. |
13 | (3) "Political subdivision" means governmental branches, departments, agencies, counties, |
14 | municipalities, special districts, as well as other governmental entities and quasi-governmental |
15 | entities created by the authorization of law. |
16 | (4) "Subsidy" means an economic benefit, direct or indirect, granted by a state government |
17 | or any political subdivision, including, but not limited to, direct grants, tax consideration, favorable |
18 | bonding status, special district status, or any other benefit that has the effect of reducing |
| |
1 | governmental costs for a venture or class of ventures compared to others similarly situated, with |
2 | the primary purpose or substantial effect of encouraging or maintaining within a state or political |
3 | subdivision's borders particular or specific classes of ventures in which private persons have a |
4 | substantial financial or ownership interest. |
5 | 44-72-3. Anti-poaching prohibition. |
6 | When two (2) or more states have passed and signed the compact, the party state |
7 | governments, or any political subdivision, shall not give a subsidy to a private enterprise for the |
8 | purpose of selectively supporting a specific industry or company, or to entice a specific industry or |
9 | company to relocate an existing facility from one party state to another party state or open a new |
10 | facility. |
11 | 44-72-4. Compact administrator and exchange of information. |
12 | (1) The governor of each party state or the governor's designee is the compact |
13 | administrator. |
14 | (2) The compact administrator of each party state shall maintain an accurate list of all party |
15 | states. |
16 | (3) The compact administrator of each party state shall furnish to the compact administrator |
17 | of each other party state any information or documents that are reasonably necessary to facilitate |
18 | the administration of this compact. |
19 | 44-72-5. Enforcement. |
20 | The attorney general of each member party state shall enforce this compact. A taxpaying |
21 | resident of any member party state has standing in the courts of any member party state to require |
22 | the attorney general of that member party state to enforce this compact. |
23 | 44-72-6. Construction and severability. |
24 | This compact shall be liberally construed in order to effectuate its purposes. If any phrase, |
25 | clause, sentence or provision of this compact, or the applicability of any phrase, clause, sentence |
26 | or provision of this compact to any government, agency, person or circumstance is declared in a |
27 | final judgment by a court of competent jurisdiction to be contrary to the constitution of the United |
28 | States or is otherwise held invalid, the validity of the remainder of this compact and the applicability |
29 | of the remainder of this compact to any government, agency, person or circumstance shall not be |
30 | affected. If this compact is held to be contrary to the constitution of any member party state, the |
31 | compact shall remain in full force and effect as to the remaining member party states and in full |
32 | force and effect as to the affected member party state as to all severable matters. |
| LC003568 - Page 2 of 4 |
1 | SECTION 2. This act shall take effect upon passage. |
======== | |
LC003568 | |
======== | |
| LC003568 - Page 3 of 4 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION - AGREEMENT TO PHASE OUT CORPORATE INCENTIVES | |
COMPACT ACT | |
*** | |
1 | This act would establish a compact agreement among at least two (2) states to prohibit the |
2 | selective use of subsidies to an existing specific industry or company, entice relocation from one |
3 | state to another state or to open a new facility. |
4 | This act would take effect upon passage. |
======== | |
LC003568 | |
======== | |
| LC003568 - Page 4 of 4 |