Regular Session 2019-2020 House Bill 2865 P.N. 4385

PRINTER'S NO. 4385

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2865

Session of

2020

INTRODUCED BY RABB, KENYATTA, DeLUCA, KEEFER, McCLINTON, OTTEN,

MADDEN AND YOUNGBLOOD, SEPTEMBER 17, 2020

REFERRED TO COMMITTEE ON COMMERCE, SEPTEMBER 17, 2020

AN ACT

Authorizing the Commonwealth of Pennsylvania to join the

Company-Specific Interstate Compact; providing for the form

of the compact; establishing the Company-Specific Tax

Incentives Prohibition Board; and imposing additional powers

and duties on the Governor.

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 Company-

Specific Interstate Compact.

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 General Assembly hereby signifies in advance its

approval and ratification of such compact:

ARTICLE I

DEFINITIONS

As used in this compact, unless the context clearly indicates

otherwise:

(a) "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

companies and is part of a special agreement negotiated with an

official of the state government.

(b) "Compacting state" means any state which has enacted

this compact legislation and which has not withdrawn or been

terminated.

Prohibition Board.

ARTICLE II

COMPANY-SPECIFIC TAX INCENTIVES

Each compacting state shall not offer company-specific tax

incentives for companies currently located in or considering

locating in any compacting state, including, but not limited to,

for corporate headquarters, manufacturing facilities, office

space or other real estate developments.

ARTICLE III

EXCLUSIONS

Company-specific tax incentives in effect on the effective

date of this compact shall not be impacted by this compact and

this compact shall not apply retroactively. Any changes to the

terms, including renewals or reenactments, of company-specific

tax incentives in effect on the effective date of this compact

shall be considered new company-specific tax incentives and

shall be prohibited.

ARTICLE IV

WORKFORCE DEVELOPMENT GRANTS

Workforce development grants shall not be subject to this

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compact agreement because employees receiving the workforce

development are the largest beneficiary.

ARTICLE V

COMPANY-SPECIFIC TAX INCENTIVES PROHIBITION BOARD

For the purpose of administering the provisions of this

compact and to serve as a governing body for the resolution of

all matters relating to the operation of this compact, the

Company-Specific Tax Incentives Prohibition Board is

established.

ARTICLE VI

COMPOSITION OF BOARD

The board shall be composed of the following members:

(1) One member appointed by the Governor of each compacting

state.

(2) One member appointed by the Majority Leader of the

Senate from each compacting state.

(3) One member appointed by the Minority Leader of the

Senate from each compacting state.

(4) One member appointed by the Majority Leader of the House

of Representatives from each compacting state.

(5) One member appointed by the Minority Leader of the House

of Representatives from each compacting state.

ARTICLE VII

DUTIES OF BOARD

The board shall have the following duties:

(1) Elect a chairperson and vice-chairperson from members

of the board each year.

(2) Meet at least no less than once a year and be

responsible for collecting testimony from interested parties

including, but not limited to, compacting states, organizations

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and associations representing state legislators, taxpayers and

subject matter experts on how this compact can be improved and

strengthened.

ARTICLE VIII

ENTRY INTO COMPACT

The Governor of a state seeking to enter into this compact

shall submit an application to the chairperson of the board for

approval by the members of the board. The application must

contain all of the following information:

(1) A citation of the legal authority to enter into this

compact.

(2) An agreement of compliance with the terms and provisions

of this compact.

ARTICLE IX

WITHDRAWAL FROM COMPACT

A compacting state may withdraw from participating in this

compact by official written notice to each compacting state.

Withdrawal shall become effective within 90 days after the

notice of withdrawal is provided to each compacting state.

ARTICLE X

TERMINATION

If the board determines that a compacting state has at any

time willfully violated any of the terms of this compact after

providing the compacting state with a notice of the violation

and a hearing, the board may terminate the state from the

compact.

Section 3. When and how compact becomes operative.

(a) General rule.--When the Governor executes the Company-

Specific Interstate Compact on behalf of this State and files a

verified copy thereof with the Secretary of the Commonwealth and

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when the compact is ratified by one or more other states, then

the compact 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 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

became effective and operative between this State and any other

state or states in accordance with this act.

Section 4. Compensation and expenses of Company-Specific Tax

Incentives Prohibition Board member.

The Company-Specific Tax Incentives Prohibition Board member

who represents this State, as provided for in Article VI of the

Company-Specific 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.

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