HB 10 — AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE AGREEMENT TO PHASE-OUT CORPORATE GIVEAWAYS ACT.

Summary

This Act adopts the Agreement to Phase-Out Corporate Giveaways, under which member states are prohibited from offering or providing company-specific tax incentives or grants to an entity as inducement for the entity to physically relocate to the state from a location in a member state. Corporate incentives are among the least effective uses of taxpayer dollars to create and maintain jobs and governments should attract and retain companies based on general conditions, not based on a specific grant for a particular company. The Agreement to Phase-Out Corporate Giveaways creates a level playing field for all employers. This Act takes effect upon the adoption of the Agreement to Phase-Out Corporate Giveaways by 2 or more states. This Act is known as the “Agreement to Phase-Out Corporate Giveaways”.

Bill Text

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This bill establishes the Agreement to Phase-Out Corporate Giveaways, prohibiting member states from providing company-specific tax incentives or grants to entice companies to relocate.

• Title 29 of the Delaware Code

  Chapter 87B. Agreement to Phase-Out Corporate Giveaways Act.

  Creates a new chapter in the Delaware Code focused on phasing out corporate giveaways.

• § 8700B

  This State hereby enters into the Agreement to Phase-Out Corporate Giveaways with all other jurisdictions legally joining the agreement.

  Formally commits Delaware to the Agreement to Phase-Out Corporate Giveaways.

• § 8704B

  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.

  Prohibits member states from providing specific incentives to attract businesses from other member states.

• § 8705B

  Workforce development grants that train employees are not subject to this agreement. Company-specific tax incentives or company-specific grants from local governments are not subject to this agreement, and state's company-specific tax incentives or state company-specific grants to entities for corporate headquarters, office space, manufacturing facilities, or real estate developments located within that specific state are not subject to this agreement.

  Clarifies exclusions from the agreement, maintaining local government grants and in-state incentives.

• § 8706B

  Any member state may withdraw from this agreement with 6 months' notice and shall do so in writing to the governor of every member state.

  Allows member states to withdraw from the agreement with proper notice.

• § 8707B

  The attorney general of each member state shall enforce this compact. A taxpaying resident of any member state has standing in the courts of any member state to require the attorney general of that member state to enforce this compact.

  Empowers attorneys general to enforce the agreement and grants legal standing to residents.

• § 8709B

  This compact shall be liberally construed so as to effectuate its purposes. If any phrase, clause, sentence or provision of this compact, or the applicability of any phrase, clause, sentence, or provision of this compact to any government, agency, person or circumstance is declared in a final judgment by a court of competent jurisdiction to be contrary to the constitution of the United States or is 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.

  Establishes how the compact should be interpreted and addresses the validity of provisions.

• § 8708B

  A national board of the agreement to phase out corporate giveaways act is established by this agreement. The governor of each member state shall appoint one member to the board.

  Creates a national board to oversee and propose improvements for the agreement.

Action History

1. March 04, 2021

   Introduced and Assigned to Economic Development/Banking/Insurance & Commerce Committee in House

Sponsors

• David P. Sokola · Primary
• Eric Morrison · Cosponsor
• Paul S. Baumbach · Primary
• John A. Kowalko · Primary

Subjects