Establishes a compact agreement among at least two (2) states to prohibit the selective use of subsidies to an existing specific industry or company, entice relocation from one state to another state or to open a new facility.
Impact
The bill proposes to amend Title 44 of the General Laws regarding taxation, adding a new chapter focused on this compact. If enacted, the implications go beyond mere economic measures; they represent a significant shift in how states interact and compete for business. The enforcement of the compact will rest with the attorneys general of the participating states, who will ensure compliance with its provisions. This could lead to a more stable business environment where corporate incentives are consistent and predictable across state lines, potentially fostering better inter-state cooperation.
Summary
House Bill H7385, also known as the Agreement to Phase Out Corporate Incentives Compact Act, aims to establish a legislative compact among at least two states. The core intent of this bill is to prohibit the selective use of subsidies by any participating state to attract or retain specific industries or companies within their borders. It seeks to create a level playing field by preventing 'poaching'—the practice of incentivizing companies to relocate from one state to another through economic incentives such as grants, tax breaks, and favorable bonding statuses.
Contention
While the bill aims to curtail aggressive subsidy wars between states, concerns have been raised regarding its potential impact on local economies. Critics argue that limiting subsidies could hinder states’ abilities to attract major businesses, especially in economically disadvantaged areas. Proponents, however, believe stabilizing the subsidy landscape will lead to healthier economic competition without compromising state revenues significantly. The compact underscores a balance between fostering growth and preventing governmental overreach into market dynamics.
Establishes a compact agreement among at least two (2) states to prohibit the use of subsidies to selectively retain industry or company entice relocation from one state to another state or to open a new facility.
Establishes a compact agreement among at least two (2) states to prohibit the use of subsidies to selectively retain industry or company entice relocation from one state to another state or to open a new facility.
Allows for the enactment of the dietitian licensure compact permitting a licensed dietitian from another state to become licensed within the state, and also permitting a dietitian licensed by the state to become licensed in another compact state.
Allows for the enactment of the dietitian licensure compact permitting a licensed dietitian from another state to become licensed within the state, and also permitting a dietitian licensed by the state to become licensed in another compact state.
Prohibits state and municipal officials or body from entering into and renewing any agreements that will be used to detain individuals for federal civil immigration violations.
Amends the definition of "regulated institution", to include non-depository trust companies organized under the law of any state or the United States Government.
Prohibits the use of service agreements that are unfair to an owner of residential real estate who enters into such an agreement or to persons who may become owners of that real estate in the future.
Prohibits the use of service agreements that are unfair to an owner of residential real estate who enters into such an agreement or to persons who may become owners of that real estate in the future.
Prohibits noncompete agreements except for noncompete agreements between a seller and buyer of a business; creates civil action for an employer for the violation of an agreement by employee regarding disclosure or wrongful utilization of trade secrets.