If enacted, this bill will significantly affect how local governments operate regarding economic incentives. The legislation clearly defines 'incentive' as any economic or financial benefits offered to entice businesses to relocate. By prohibiting such offers, it seeks to curb the ongoing competition among local governments to attract businesses through tax breaks or subsidies, thus fostering a more level playing field within the state. Furthermore, the bill explicitly restricts the home rule powers granted to municipalities, limiting their autonomy in regulating business relocations and economic incentives.
Summary
House Bill 2360 introduces the Local Government Business Anti-Poaching Act, which primarily aims to prevent municipalities and counties in Illinois from offering any incentives to businesses or corporations to relocate their headquarters or parts of their operations outside the state. The bill is introduced to maintain businesses within Illinois, counter the trend of corporate poaching, and enhance local business stability.
Contention
A notable point of contention surrounding HB2360 is the balance between state authority and local control. Proponents argue that limiting local governments from providing incentives is essential for state-wide economic consistency and prevents the risk of a bidding war that could unfairly benefit certain areas over others. On the other hand, opponents claim that the bill undermines local governments' ability to make strategic economic decisions tailored to their communities' specific needs, which might exacerbate challenges for cities that rely on the ability to offer incentives to attract businesses.