Establishes a compact agreement among at least two (2) states to prohibit the use of subsidies to selectively retain industry or company entice relocation from one state to another state or to open a new facility.
Impact
If enacted, this bill would significantly impact state laws pertaining to business subsidies and competitive practices among states. It seeks to deter states from providing financial incentives that could undermine neighboring jurisdictions, promoting a collaborative instead of a competitive environment. This could affect existing subsidy programs and might lead to a reassessment of how states incentivize business operations. Furthermore, all states that join the compact will be subject to similar standards, making it more difficult for any state to gain a competitive edge through subsidies.
Summary
S2342, also known as the Agreement to Phase Out Corporate Incentives Compact Act, proposes to establish a compact among states to prohibit the use of subsidies for selectively retaining industries or enticing them to relocate. The intent of this legislation is to create a more level playing field across neighboring states, preventing aggressive incentives that can lead to potential poaching of businesses. The main goal is to enhance competition and promote equitable economic development without the manipulation of resources through state-sponsored subsidies.
Contention
Noteworthy points of contention surrounding S2342 include concerns from proponents who argue that the bill fosters fair business practices and could reduce wasted taxpayer dollars used in competitive subsidy battles. However, critics may argue that such a compact could limit a state's ability to attract new business investments which are often crucial for local economic growth. The discussion around this legislation may include debates on the efficacy of state versus federal involvement in economic incentivization and the potential limitations imposed on state innovation in attracting industries.
Authorizing The Town Of Coventry To Issue Not More Than $25,000,000 Bonds And Notes To Finance Construction, Renovation, Rehabilitation, Repair, Improvement, Furnishing And/or Equipping Of And/or Additions To Schools And School Facilities Throughout The Town, Subject To Approval Of State School Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 49.2 % For Expenditures Eligible For Reimbursement