Agreement for Best Practices in Economic Development
The bill posits to ameliorate the existing dilemma wherein states and local governments compete for businesses through financial giveaways, often leading to inefficiencies and inequities in economic development. If enacted, HB 473 will encourage a shift from targeted incentives for individual companies towards broader policies that promote favorable conditions for all businesses in a state. This is expected to level the playing field and provide consistent standards for economic development efforts across participating states. Additionally, the bill emphasizes the importance of maintaining public records on economic development agreements to facilitate transparency and accountability.
House Bill 473, known as the 'Agreement for Best Practices in Economic Development,' seeks to establish a set of collaborative best practices among states regarding economic incentives. The bill aims to create a National Board for Best Practices in Economic Development, which will oversee the development and dissemination of policies that advance economic growth with minimal taxpayer investment. A central tenet of the bill is its prohibition on offering company-specific tax incentives or grants to attract businesses from other member states, a situation referred to as 'economic poaching.' The bill promotes equal support for all businesses operating within a state and advocates for transparency in such agreements.
Notably, the bill's anti-poaching provisions have raised discussions on the potential impact on local and regional economic strategies. While proponents argue that the move away from company-specific incentives will foster a healthier economic environment, opponents express concerns regarding its implications for local autonomy and the ability of communities to attract businesses effectively. Moreover, there are exceptions in the bill for workforce development grants and local agency incentives, which highlights ongoing tension between cooperation among states and preserving local control over economic development initiatives.