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| 3 | 3 | | HB 473 2023 |
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| 10 | 10 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 14 | 14 | | A bill to be entitled 1 |
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| 15 | 15 | | An act relating to an agreement for best practices in 2 |
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| 16 | 16 | | economic development; creating the Agreement for Best 3 |
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| 17 | 17 | | Practices in Economic Development; providing a short 4 |
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| 18 | 18 | | title; providing definitions; providing findings; 5 |
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| 19 | 19 | | establishing the National Board for Best Prac tices in 6 |
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| 20 | 20 | | Economic Development; specifying membership of the 7 |
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| 21 | 21 | | board; specifying procedures for electing officers; 8 |
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| 22 | 22 | | establishing rules and procedures; requiring the board 9 |
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| 23 | 23 | | to publish specified material regarding best practices 10 |
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| 24 | 24 | | in economic development; requiring the board to 11 |
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| 25 | 25 | | suggest annual revisions to the agreement; requiring 12 |
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| 26 | 26 | | the board to collect testimony related to economic 13 |
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| 27 | 27 | | development improvements; prohibiting member states 14 |
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| 28 | 28 | | from offering or providing company -specific tax 15 |
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| 29 | 29 | | incentives or company -specific grants for specified 16 |
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| 30 | 30 | | purposes; providing exceptions; specifying that 17 |
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| 31 | 31 | | economic development agreements are subject to the 18 |
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| 32 | 32 | | member state's public records laws; prohibiting local 19 |
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| 33 | 33 | | agencies from entering into specified economic 20 |
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| 34 | 34 | | development agreements that are exempt fro m the member 21 |
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| 35 | 35 | | state's public records laws; requiring member states 22 |
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| 36 | 36 | | to provide electronic copies of specified documents; 23 |
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| 37 | 37 | | providing procedures for withdrawing from the 24 |
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| 38 | 38 | | agreement; providing for enforcement; providing for 25 |
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| 40 | 40 | | HB 473 2023 |
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| 47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 48 | 48 | | |
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| 50 | 50 | | |
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| 51 | 51 | | liberal construction; providing for sev erability under 26 |
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| 52 | 52 | | specified circumstances; providing a contingent 27 |
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| 53 | 53 | | effective date. 28 |
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| 54 | 54 | | 29 |
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| 55 | 55 | | Be It Enacted by the Legislature of the State of Florida: 30 |
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| 56 | 56 | | 31 |
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| 57 | 57 | | Section 1. The Agreement for Best Practices in Economic 32 |
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| 58 | 58 | | Development is hereby enacted and entered into by th is state 33 |
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| 59 | 59 | | with all other jurisdictions legally joining it in the form 34 |
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| 60 | 60 | | substantially as follows: 35 |
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| 61 | 61 | | 36 |
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| 62 | 62 | | AGREEMENT FOR BEST PRACTICES IN ECONOMIC DEVELOPMENT 37 |
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| 63 | 63 | | 38 |
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| 64 | 64 | | ARTICLE I 39 |
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| 65 | 65 | | 40 |
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| 66 | 66 | | Title 41 |
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| 67 | 67 | | 42 |
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| 68 | 68 | | This act shall be known and cited as the "Agreement for 43 |
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| 69 | 69 | | Best Practices in Economic Deve lopment." 44 |
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| 70 | 70 | | 45 |
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| 71 | 71 | | ARTICLE II 46 |
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| 72 | 72 | | 47 |
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| 73 | 73 | | Definitions 48 |
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| 74 | 74 | | 49 |
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| 75 | 75 | | As used in this agreement, unless the context clearly 50 |
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| 77 | 77 | | HB 473 2023 |
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| 84 | 84 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 85 | 85 | | |
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| 86 | 86 | | |
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| 87 | 87 | | |
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| 88 | 88 | | indicates otherwise, the following terms have the following 51 |
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| 89 | 89 | | meanings: 52 |
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| 90 | 90 | | (1) "Best practices" means the laws, policies, and 53 |
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| 91 | 91 | | procedures that have been demonstrated to support the most 54 |
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| 92 | 92 | | amount of economic growth with the least amount of taxpayer 55 |
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| 93 | 93 | | investment. 56 |
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| 94 | 94 | | (2) "Board" means the National Board for Best Practices in 57 |
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| 95 | 95 | | Economic Development that may be established by the member 58 |
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| 96 | 96 | | states. Nonvoting membership shall be open to a ny county, 59 |
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| 97 | 97 | | municipality, metropolitan planning organization, special 60 |
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| 98 | 98 | | district, community development district, or economic 61 |
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| 99 | 99 | | development agency under terms established by the board. 62 |
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| 100 | 100 | | (3) "Company-specific grant" means any disbursement of 63 |
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| 101 | 101 | | funds, whether property, cash, or deferred or reduced tax 64 |
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| 102 | 102 | | liability, by a state or local agency to a particular company. 65 |
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| 103 | 103 | | (4) "Company-specific tax incentive" means any change in 66 |
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| 104 | 104 | | the general tax rate or valuation offered or presented to a 67 |
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| 105 | 105 | | specific company that is not availa ble to other similarly 68 |
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| 106 | 106 | | situated companies. 69 |
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| 107 | 107 | | (5) "Corporate giveaway" means any company -specific or 70 |
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| 108 | 108 | | industry-specific disbursement of funds, whether property, cash, 71 |
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| 109 | 109 | | or deferred or reduced tax liability, by a state or local agency 72 |
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| 110 | 110 | | to a particular company or industry. 73 |
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| 111 | 111 | | (6) "Local agency" means a county, municipality, 74 |
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| 112 | 112 | | metropolitan planning organization, special district, community 75 |
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| 121 | 121 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 122 | 122 | | |
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| 123 | 123 | | |
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| 124 | 124 | | |
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| 125 | 125 | | development district, or economic development agency. 76 |
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| 126 | 126 | | (7) "Located in any other member state" means any 77 |
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| 127 | 127 | | corporate headquarters, office space, manufacturing facility, or 78 |
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| 128 | 128 | | other real estate development that is physically located in 79 |
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| 129 | 129 | | another member state, regardless of whether the company has 80 |
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| 130 | 130 | | other property in the member state. 81 |
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| 131 | 131 | | (8) "Member state" means any state or the District of 82 |
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| 132 | 132 | | Columbia that has enacted a statute agreeing to this agreement. 83 |
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| 133 | 133 | | (9) "Nonvoting member" means any county, municipality, 84 |
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| 134 | 134 | | metropolitan planning organization, special district, community 85 |
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| 135 | 135 | | development district, or economic development agency that seeks 86 |
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| 136 | 136 | | to join the board. A nonvoting member may not appoint a voting 87 |
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| 137 | 137 | | member to the board for governance purposes. 88 |
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| 138 | 138 | | 89 |
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| 139 | 139 | | ARTICLE III 90 |
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| 140 | 140 | | 91 |
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| 141 | 141 | | Findings 92 |
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| 142 | 142 | | 93 |
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| 143 | 143 | | The member states find that: 94 |
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| 144 | 144 | | (1) Corporate giveaways are among the least effective uses 95 |
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| 145 | 145 | | of taxpayer dollars to create and maintain jobs. 96 |
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| 146 | 146 | | (2) Local and state leaders are in a prisoners' dilemma in 97 |
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| 147 | 147 | | which it is in the public interest to create a level playing 98 |
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| 148 | 148 | | field for all companies without any corporate giveaways, but 99 |
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| 149 | 149 | | each level of government has an incentive to subsidize a 100 |
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| 151 | 151 | | HB 473 2023 |
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| 158 | 158 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 159 | 159 | | |
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| 160 | 160 | | |
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| 161 | 161 | | |
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| 162 | 162 | | company, generating a race to the bottom. 101 |
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| 163 | 163 | | (3) Governments should attract and retain entrepreneurs 102 |
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| 164 | 164 | | and companies based on general conditions, including modern 103 |
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| 165 | 165 | | infrastructure, an educated workforce, a clean environment, and 104 |
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| 166 | 166 | | a favorable tax and regulatory climate, no t based on a specific 105 |
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| 167 | 167 | | grant for a particular company. 106 |
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| 168 | 168 | | (4) Corporate giveaways fuel business inequality since the 107 |
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| 169 | 169 | | largest businesses receive the vast majority of these funds. 108 |
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| 170 | 170 | | (5) Entrepreneurs and companies have a legitimate right to 109 |
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| 171 | 171 | | determine the optimal site selection plans for future growth, 110 |
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| 172 | 172 | | and providing decisionmakers with all the relevant information 111 |
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| 173 | 173 | | is among the most important tasks for economic development 112 |
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| 174 | 174 | | officials. 113 |
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| 175 | 175 | | (6) Despite enormous amounts of publicly generated data 114 |
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| 176 | 176 | | and federally required planning reports from several different 115 |
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| 177 | 177 | | agencies, it remains difficult for entrepreneurs and companies 116 |
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| 178 | 178 | | to access relevant, actionable information to assist them in 117 |
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| 179 | 179 | | their planning decisions. 118 |
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| 180 | 180 | | (7) State and local agencies tasked with economic 119 |
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| 181 | 181 | | development would benefit from a shared resource devoted to 120 |
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| 182 | 182 | | discovering and disseminating best practices to help officials 121 |
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| 183 | 183 | | implement policies and programs that benefit all entrepreneurs 122 |
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| 184 | 184 | | and companies equally rather than relying on company -specific 123 |
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| 185 | 185 | | giveaways that only b enefit a few. 124 |
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| 186 | 186 | | (8) A board for best practices in economic development 125 |
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| 195 | 195 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 199 | 199 | | charged with finding consensus around best practices in economic 126 |
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| 200 | 200 | | development for states and local agencies to consider 127 |
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| 201 | 201 | | implementing in a collaborative manner will assist state and 128 |
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| 202 | 202 | | local agencies in escaping from the prisoners' dilemma of 129 |
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| 203 | 203 | | company-specific tax incentives and company -specific grants and 130 |
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| 204 | 204 | | assist in implementing a level playing field for all companies. 131 |
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| 205 | 205 | | 132 |
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| 206 | 206 | | ARTICLE IV 133 |
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| 207 | 207 | | 134 |
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| 208 | 208 | | National Board for Best Practices in Economic Development 135 |
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| 209 | 209 | | 136 |
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| 210 | 210 | | (1) This agreement establishes a national board for best 137 |
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| 211 | 211 | | practices in economic development. The chief executive officer 138 |
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| 212 | 212 | | of each member state shall appoint three members to the board. 139 |
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| 213 | 213 | | State legislators may be appointed as members. 140 |
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| 214 | 214 | | (2) The board shall acc ept nonvoting members from 141 |
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| 215 | 215 | | nonmember states and from any local agency that wishes to join 142 |
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| 216 | 216 | | the board under the terms established by the board. 143 |
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| 217 | 217 | | (3) The board may publish a schedule of dues for member 144 |
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| 218 | 218 | | states and nonvoting members. 145 |
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| 219 | 219 | | (4) The board shall conv ene at least annually, either 146 |
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| 220 | 220 | | remotely or in person, to elect officers from its membership and 147 |
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| 221 | 221 | | to establish rules and procedures for its governance. 148 |
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| 222 | 222 | | (5) The board shall: 149 |
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| 223 | 223 | | (a) Publish and disseminate a national shared resource of 150 |
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| 232 | 232 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 233 | 233 | | |
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| 234 | 234 | | |
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| 235 | 235 | | |
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| 236 | 236 | | best practices in econom ic development to move away from 151 |
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| 237 | 237 | | company-specific tax incentives and company -specific grants and 152 |
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| 238 | 238 | | move toward collaborative policies that equally assist all 153 |
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| 239 | 239 | | communities, entrepreneurs, and companies. The board shall 154 |
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| 240 | 240 | | accept and publish all planning and econo mic development reports 155 |
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| 241 | 241 | | submitted to it by member states and nonvoting members. 156 |
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| 242 | 242 | | (b) Suggest revisions to this agreement in December of 157 |
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| 243 | 243 | | every year to strengthen the agreement for member and nonmember 158 |
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| 244 | 244 | | states. Suggested revisions should support member state s in 159 |
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| 245 | 245 | | moving toward evidence -based economic development policies and 160 |
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| 246 | 246 | | away from company-specific expenditures. 161 |
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| 247 | 247 | | (6) The board shall collect testimony from all interested 162 |
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| 248 | 248 | | parties, including academic and subject matter experts, 163 |
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| 249 | 249 | | companies, organizations, local agencies, and associations 164 |
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| 250 | 250 | | representing state legislators and governors, on how to improve 165 |
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| 251 | 251 | | economic development and strengthen this agreement. 166 |
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| 252 | 252 | | 167 |
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| 253 | 253 | | ARTICLE V 168 |
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| 254 | 254 | | 169 |
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| 255 | 255 | | Anti-poaching Prohibition 170 |
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| 256 | 256 | | 171 |
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| 257 | 257 | | A member state may not offer or provide to a company that 172 |
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| 258 | 258 | | is located in any other member state any company -specific tax 173 |
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| 259 | 259 | | incentive or company -specific grant for a corporate 174 |
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| 260 | 260 | | headquarters, manufacturing facility, office space, or other 175 |
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| 269 | 269 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 270 | 270 | | |
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| 271 | 271 | | |
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| 272 | 272 | | |
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| 273 | 273 | | real estate development to induce the company to relocate its 176 |
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| 274 | 274 | | corporate headquarters, manufactu ring facility, office space, or 177 |
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| 275 | 275 | | other real estate development to the offering member state. 178 |
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| 276 | 276 | | 179 |
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| 277 | 277 | | ARTICLE VI 180 |
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| 278 | 278 | | 181 |
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| 279 | 279 | | Exclusions 182 |
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| 280 | 280 | | 183 |
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| 281 | 281 | | (1) Workforce development grants to train employees are 184 |
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| 282 | 282 | | not subject to this agreement. 185 |
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| 283 | 283 | | (2) Company-specific tax incentives or company-specific 186 |
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| 284 | 284 | | grants from local agencies are not subject to this agreement. 187 |
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| 285 | 285 | | (3) Company-specific tax incentives or company -specific 188 |
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| 286 | 286 | | grants from a state to a company for a corporate headquarters, 189 |
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| 287 | 287 | | office space, a manufacturing facility, or other real es tate 190 |
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| 288 | 288 | | development located within its own state are not subject to this 191 |
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| 289 | 289 | | agreement. 192 |
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| 290 | 290 | | 193 |
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| 291 | 291 | | ARTICLE VII 194 |
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| 292 | 292 | | 195 |
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| 293 | 293 | | Transparency 196 |
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| 294 | 294 | | 197 |
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| 295 | 295 | | (1) All proposed and existing economic development 198 |
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| 296 | 296 | | agreements from any jurisdiction in any member state by a local 199 |
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| 297 | 297 | | agency are subject to the member state's public records laws. A 200 |
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| 298 | 298 | | |
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| 306 | 306 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 307 | 307 | | |
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| 308 | 308 | | |
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| 309 | 309 | | |
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| 310 | 310 | | local agency may not enter into an economic development 201 |
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| 311 | 311 | | agreement that invol ves any company-specific tax incentive or 202 |
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| 312 | 312 | | company-specific grant with any company that is not public and 203 |
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| 313 | 313 | | is exempt from the member state's public records laws. 204 |
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| 314 | 314 | | (2) All products and resources produced by the board are 205 |
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| 315 | 315 | | public and shall be published and acc essible on a website. 206 |
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| 316 | 316 | | 207 |
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| 317 | 317 | | ARTICLE VIII 208 |
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| 318 | 318 | | 209 |
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| 319 | 319 | | Data and Report Sharing 210 |
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| 320 | 320 | | 211 |
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| 321 | 321 | | In order to assist the board in compiling and publishing 212 |
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| 322 | 322 | | the national shared resource for economic development, each 213 |
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| 323 | 323 | | member state shall provide to the board electronic copies of all 214 |
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| 324 | 324 | | economic development and planning reports generated as part of 215 |
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| 325 | 325 | | federal or state programmatic activities. 216 |
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| 326 | 326 | | 217 |
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| 327 | 327 | | ARTICLE IX 218 |
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| 328 | 328 | | 219 |
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| 329 | 329 | | Withdrawal 220 |
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| 330 | 330 | | 221 |
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| 331 | 331 | | A member state may withdraw from this agreement with 6 222 |
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| 332 | 332 | | months' notice and must do so in writing to the chief executive 223 |
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| 333 | 333 | | officer of every other member state. 224 |
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| 334 | 334 | | 225 |
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| 343 | 343 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 344 | 344 | | |
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| 346 | 346 | | |
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| 347 | 347 | | ARTICLE X 226 |
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| 348 | 348 | | 227 |
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| 349 | 349 | | Enforcement 228 |
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| 350 | 350 | | 229 |
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| 351 | 351 | | The chief law enforcement officer of each member state 230 |
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| 352 | 352 | | shall enforce this agreement. 231 |
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| 353 | 353 | | 232 |
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| 354 | 354 | | ARTICLE XI 233 |
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| 355 | 355 | | 234 |
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| 356 | 356 | | Construction and Severability 235 |
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| 357 | 357 | | 236 |
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| 358 | 358 | | (1) This agreement shall be liberally construed to 237 |
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| 359 | 359 | | effectuate its purposes. 238 |
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| 360 | 360 | | (2) If any phrase, clause, sentence, or provision of this 239 |
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| 361 | 361 | | compact or the applicability of any phrase, clause, sentence, or 240 |
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| 362 | 362 | | provision of this agreement to any government, local agency, 241 |
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| 363 | 363 | | person, or circumstance is declared in a final judgment by a 242 |
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| 364 | 364 | | court of competent jurisdiction to be contrary to the 243 |
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| 365 | 365 | | constitution of the United States or is otherwise held invalid, 244 |
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| 366 | 366 | | the validity of the remainder of this agreement and the 245 |
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| 367 | 367 | | applicability of the remainder of this agreement to any 246 |
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| 368 | 368 | | government, local agency, person, or circumstance will not be 247 |
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| 369 | 369 | | affected. 248 |
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| 370 | 370 | | (3) If this agreement is held to be contrary to the 249 |
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| 371 | 371 | | constitution of any member state, the agreement shall remain in 250 |
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| 380 | 380 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 384 | 384 | | full force and effect as to the remaining member states and 251 |
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| 385 | 385 | | shall remain in full force and effect as t o the affected member 252 |
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| 386 | 386 | | state related to all severable matters. 253 |
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| 387 | 387 | | Section 2. This act shall take effect upon the adoption of 254 |
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| 388 | 388 | | the agreement by two or more states . 255 |
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