PRINTER'S NO. 874

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

873

Session of

2021

INTRODUCED BY RABB, INNAMORATO, HILL-EVANS, KRAJEWSKI, WEBSTER,

MADDEN, KEEFER, DELLOSO, ROWE, LEWIS AND KINKEAD,

MARCH 15, 2021

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Phase Out

Corporate Giveaways Interstate Compact Act.

Section 2. Authority to execute compact.

The Governor of Pennsylvania, on behalf of this State, is

hereby authorized to execute a compact in substantially the

following form with any one or more of the states of the United

States and the District of Columbia, and the General Assembly

compact.

ARTICLE 2

As used in this compact:

"Company-specific grant" means any disbursement of funds via

property, cash or deferred tax liability by the state government

to a particular company.

"Company-specific tax incentive" means any change in the

general tax rate or valuation offered or presented to a specific

company that is not available to other similarly situated

"Member state" means any state or the District of Columbia

that has entered into this compact.

ARTICLE 3

FINDINGS

The member states find that:

(1) corporate giveaways are among the least effective

uses of taxpayer dollars to create and maintain jobs;

(2) local and state leaders are in a prisoners' dilemma

where it is best for all to create a level playing field for

all employers without any corporate giveaways, but each level

modern infrastructure, an educated workforce, a clean

environment and a favorable tax and regulatory climate) that

are not based on a specific grant for a particular company;

(4) corporate giveaways fuel business inequality as only

the largest businesses receive the vast majority of these

funds;

(5) a reasonable first step in phasing out corporate

giveaways is an anti-poaching agreement among state

governments prohibiting state company-specific tax incentives

and state company-specific grants as an inducement for

ARTICLE 4

POACHING PROHIBITION

Each member state is prohibited from offering or providing

any company-specific tax incentive or company-specific grant to

any entity for a corporate headquarters, manufacturing facility,

office space or other real estate development located in any

other member state as an inducement for the corporate

headquarters, manufacturing facility, office space or other real

estate development to relocate to the offering member state.

ARTICLE 5

grants from local governments.

(3) State company-specific tax incentives or state

company-specific grants to entities with corporate

headquarters, office space, manufacturing facilities or real

estate developments already located within its own state with

the goal to keep within the member state or expand within the

member state the in-state facility or development.

ARTICLE 6

Any member state may withdraw from this compact with six

in the courts of any member state to require the attorney

general of that member state to enforce this compact.

ARTICLE 8

BOARD

The Phase Out Corporate Giveaways Board is established upon

the second member state entering into this compact. Each chief

executive officer of each member state shall appoint one member

to the Board. The Board shall accept appointees from non-member

states that wish to appoint a member of the Board. The purpose

of the Board is to publish suggested revisions to this compact

annually, elect officers from its membership, establish rules

and procedures for its governance and publish a report in

December of every year that includes suggested revisions and

improvements to this compact. The Board shall collect testimony

from all interested parties, including organizations and

associations representing state legislators, taxpayers and

subject matter experts, on how the compact can be improved and

strengthened.

ARTICLE 9

CONSTRUCTION AND SEVERABILITY

otherwise held invalid, the validity of the remainder of this

compact and the applicability of the remainder of this compact

to any government, agency, person or circumstance shall not be

affected. If this compact is held to be contrary to the

constitution of any member state, the compact shall remain in

full force and effect as to the remaining member states and in

full force and effect as to the affected member state as to all

severable matters.

Section 3. When and how compact becomes operative.

(a) General rule.--When the Governor executes the Phase Out

shall become operative and effective between this State and such

other state or states. The Governor is hereby authorized and

directed to take such action as may be necessary to complete the

exchange of official documents between this State and any other

state and the District of Columbia ratifying the compact.

(b) Notice in Pennsylvania Bulletin.--The Secretary of the

Commonwealth shall transmit a notice to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin

when the conditions set forth in subsection (a) are satisfied

and shall include in the notice the date on which the compact

this State, as provided for in Article 8 of the Phase Out

Corporate Giveaways Interstate Compact, shall not be entitled to

any additional compensation for the member's duties and

responsibilities as a member, but shall be entitled to

reimbursement for reasonable expenses actually incurred in

connection with member's duties and responsibilities as a

member.

Section 5. Effective date.

This act shall take effect in 60 days.