Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0425 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0425
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7	7	LC000265
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION - AGREEMENT TO PHAS E OUT CORPORATE INCEN TIVES
16	16	COMPACT ACT
17	17	Introduced By: Senators Bell, Murray, Mack, Euer, and Quezada
18	18	Date Introduced: February 26, 2025
19	19	Referred To: Senate Finance
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 1
24	24	adding thereto the following chapter: 2
25	25	CHAPTER 72 3
26	26	AGREEMENT TO PHASE OUT CORPORATE INCENTIVES COMPACT ACT 4
27	27	44-72-1. Membership. 5
28	28	Any state of the United States and the District of Columbia may become a member of this 6
29	29	agreement/compact by enacting this agreement in substantially the following form. 7
30	30	44-72-2. Definitions. 8
31	31	As used in this chapter: 9
32	32	(1) "Facility" means, but is not limited to, a headquarters, warehouse, outlet, affiliate, 10
33	33	office, or production facility of a company. 11
34	34	(2) "Party state" means a state that has enacted a statute agreeing to this compact. 12
35	35	(3) "Political subdivision" means governmental branches, departments, agencies, counties, 13
36	36	municipalities, special districts, as well as other governmental entities and quasi-governmental 14
37	37	entities created by the authorization of law. 15
38	38	(4) "Subsidy" means an economic benefit, direct or indirect, granted by a state government 16
39	39	or any political subdivision, including, but not limited to, direct grants, tax consideration, favorable 17
40	40	bonding status, special district status, or any other benefit that has the effect of reducing 18
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43	43	LC000265 - Page 2 of 4
44	44	governmental costs for a venture or class of ventures compared to others similarly situated, with 1
45	45	the primary purpose or substantial effect of encouraging or maintaining within a state's or political 2
46	46	subdivision's borders particular or specific classes of ventures in which private persons have a 3
47	47	substantial financial or ownership interest. 4
48	48	44-72-3. Anti-poaching prohibition. 5
49	49	When two (2) or more states have passed and signed the compact, the party state 6
50	50	governments, or any political subdivision, shall not give a subsidy to a private enterprise for the 7
51	51	purpose of selectively supporting a specific industry or company, or to entice a specific industry or 8
52	52	company to relocate an existing facility from one party state to another party state or open a new 9
53	53	facility. 10
54	54	44-72-4. Compact administrator and exchange of information. 11
55	55	(1) The governor of each party state or the governor's designee is the compact 12
56	56	administrator. 13
57	57	(2) The compact administrator of each party state shall maintain an accurate list of all party 14
58	58	states. 15
59	59	(3) The compact administrator of each party state shall furnish to the compact administrator 16
60	60	of each other party state any information or documents that are reasonably necessary to facilitate 17
61	61	the administration of this compact. 18
62	62	44-72-5. Enforcement. 19
63	63	The attorney general of each member party state shall enforce this compact. A taxpaying 20
64	64	resident of any member party state has standing in the courts of any member party state to require 21
65	65	the attorney general of that member party state to enforce this compact. 22
66	66	44-72-6. Construction and severability. 23
67	67	This compact shall be liberally construed in order to effectuate its purposes. If any phrase, 24
68	68	clause, sentence or provision of this compact, or the applicability of any phrase, clause, sentence 25
69	69	or provision of this compact to any government, agency, person or circumstance is declared in a 26
70	70	final judgment by a court of competent jurisdiction to be contrary to the Constitution of the United 27
71	71	States or is otherwise held invalid, the validity of the remainder of this compact and the applicability 28
72	72	of the remainder of this compact to any government, agency, person or circumstance shall not be 29
73	73	affected. If this compact is held to be contrary to the constitution of any member party state, the 30
74	74	compact shall remain in full force and effect as to the remaining member party states and in full 31
75	75	force and effect as to the affected member party state as to all severable matters. 32
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78	78	LC000265 - Page 3 of 4
79	79	SECTION 2. This act shall take effect upon passage. 1
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81	81	LC000265
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86	86	EXPLANATION
87	87	BY THE LEGISLATIVE COUNCIL
88	88	OF
89	89	A N A C T
90	90	RELATING TO TAXATION - AGREEMENT TO PHAS E OUT CORPORATE INCENTIVES
91	91	COMPACT ACT
92	92	***
93	93	This act would establish a compact agreement among at least two (2) states to prohibit the 1
94	94	selective use of subsidies to an existing specific industry or company, entice relocation from one 2
95	95	state to another state or to open a new facility. 3
96	96	This act would take effect upon passage. 4
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98	98	LC000265
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