House
File
2095
-
Introduced
HOUSE
FILE
2095
BY
MASCHER
A
BILL
FOR
An
Act
creating
a
compact
with
certain
other
states
to
phase
1
out
corporate
welfare.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2095
Section
1.
NEW
SECTION
.
28O.1
Compact
to
phase
out
1
corporate
welfare.
2
1.
This
chapter
may
be
cited
as
the
“Compact
to
Phase
Out
3
Corporate
Welfare”
.
4
2.
This
compact
to
phase
out
corporate
welfare
shall
be
5
entered
into
with
any
state
and
the
District
of
Columbia
if
a
6
state
or
the
District
of
Columbia
enacts
enabling
laws
and
this
7
compact
in
substantially
the
following
form:
8
3.
Article
1
——
Membership.
Any
state
and
the
District
of
9
Columbia
may
become
a
member
of
this
compact.
10
4.
Article
2
——
Definitions.
As
used
in
this
section,
11
unless
the
context
otherwise
requires:
12
a.
“Company-specific
grant”
means
any
disbursement
of
funds
13
by
the
state
to
a
particular
company
via
property,
cash,
or
14
deferred
tax
liability.
15
b.
“Company-specific
tax
incentive”
means
any
change
in
16
the
general
tax
rate
or
tax
valuation
offered
or
presented
to
17
a
specific
company
that
is
not
available
to
other
similarly
18
situated
companies,
including
any
tax
incentive
that
is
part
of
19
a
special
agreement
negotiated
with
an
official
of
the
state
20
government.
21
c.
“Corporate
welfare”
means
any
company-specific
or
22
industry-specific
disbursement
of
funds
by
a
state
or
local
23
government
to
a
particular
company
or
a
particular
industry
in
24
the
form
of
property,
cash,
deferred
tax
liability,
or
reduced
25
tax
liability.
26
d.
“
Located
in
any
other
member
state”
means
any
office
27
space,
manufacturing
facility,
or
company
headquarters
that
is
28
physically
located
in
another
member
state,
whether
or
not
the
29
company
has
additional
real
property
in
the
member
state.
30
e.
“Member
state”
means
any
state
or
the
District
of
31
Columbia
that
has
enacted
this
compact.
32
5.
Article
3
——
Findings.
The
member
states
find
all
of
the
33
following:
34
a.
Corporate
welfare
as
an
economic
development
policy
is
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among
the
least
effective
uses
of
taxpayer
dollars.
1
b.
Local
and
state
leaders
are
in
a
prisoner’s
dilemma
2
where
it
is
in
all
member
states’
interest
to
stop
corporate
3
welfare
altogether
and
to
create
a
level
playing
field
for
4
all
employers;
however,
each
level
of
government
has
the
5
incentive
to
subsidize
companies
through
corporate
welfare
6
which
generates
a
race
to
the
bottom.
7
c.
Member
states’
cooperation
to
phase
out
all
forms
of
8
corporate
welfare,
both
company-specific
and
industry-specific,
9
is
required
to
free
government
leaders
from
the
prisoner’s
10
dilemma.
11
d.
While
it
will
take
years
to
build
a
national
consensus
to
12
phase
out
all
forms
of
corporate
welfare,
member
states
must
13
begin
to
phase
out
the
most
egregious
and
destructive
forms
of
14
corporate
welfare
as
soon
as
practical
where
member
states
can
15
reach
an
agreement
to
do
so.
16
e.
Companies
should
grow
and
potentially
relocate
to
other
17
states
based
on
the
general
condition
of
the
state,
including
18
but
not
limited
to
more
modern
infrastructure,
an
educated
19
workforce,
a
clean
environment,
and
a
favorable
tax
and
20
regulatory
climate,
and
not
based
on
corporate
welfare.
21
f.
Company-specific
tax
incentives
and
company-specific
22
grants
fuel
business
inequality
as
only
the
largest
businesses
23
tend
to
receive
the
company-specific
tax
incentives
and
24
company-specific
grants.
25
g.
A
national
board
of
appointees
from
member
states
is
26
created
to
come
to
a
consensus
and
to
draft
improvements
to
27
this
compact.
28
h.
This
compact
shall
utilize
a
collaborative
approach
29
to
build
a
national
consensus
for
a
better,
fairer
economic
30
development
policy
for
all
member
states.
31
6.
Article
4
——
Corporate
welfare
offered
to
companies
in
32
other
member
states.
33
a.
Each
member
state
shall
agree
to
refrain
from
offering
or
34
providing
any
company-specific
tax
incentives,
company-specific
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grants,
or
other
distribution
of
funds
prohibited
under
this
1
compact
to
any
company
currently
located
in
any
other
member
2
state.
3
b.
Each
member
state
shall
agree
to
refrain
from
offering
4
or
providing
funds
for
corporate
headquarters,
manufacturing
5
facilities,
office
space,
or
other
real
estate
developments
for
6
any
company
currently
located
in
any
other
member
state
if
that
7
facility,
headquarters,
or
office
space
will
relocate
to
the
8
offering
member
state.
9
7.
Article
5
——
Exclusions.
10
a.
Workforce
development
grants
that
are
used
by
companies
11
to
fund
employee
training
are
not
subject
to
this
compact.
12
b.
Company-specific
grants
awarded
before
the
effective
date
13
of
this
compact
shall
not
be
subject
to
this
compact
unless
any
14
changes
to
the
terms
and
conditions
of
the
grant
occur
on
or
15
after
the
effective
date
of
this
compact.
16
8.
Article
6
——
Withdrawal.
Any
member
state
may
withdraw
17
from
this
compact
with
six
months
advance
written
notice
to
the
18
chief
executive
officer
of
every
other
member
state.
19
9.
Article
7
——
Enforcement.
20
a.
The
chief
law
enforcement
officer
of
each
member
state
21
shall
enforce
this
compact.
22
b.
A
taxpaying
resident
of
any
member
state
has
standing
in
23
the
courts
of
any
member
state
to
file
suit
asking
the
court
to
24
require
the
chief
law
enforcement
officer
of
that
member
state
25
to
enforce
this
compact.
26
10.
Article
8
——
National
board
of
states
to
determine
next
27
steps.
A
board
of
member
states
is
established.
The
chief
28
executive
officer
of
each
member
state
shall
appoint
one
29
member
to
the
board.
The
board
shall
accept
appointees
from
30
nonmember
states.
The
board
shall
convene
at
least
annually,
31
elect
officers
from
the
board’s
membership,
establish
rules
and
32
procedures
for
the
board’s
governance,
and
publish
an
annual
33
report
in
December
that
suggests
improvements
to
this
compact.
34
The
board
shall
seek
input
from
member
states,
organizations
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and
associations
representing
state
legislators,
taxpayers,
and
1
subject
matter
experts
on
improvements
to
the
compact.
2
11.
Article
9
——
Construction
and
severability.
3
a.
This
compact
shall
be
liberally
construed
to
effectuate
4
its
purposes.
If
any
phrase,
clause,
sentence,
or
provision
of
5
this
compact
is
declared
by
a
court
of
competent
jurisdiction
6
to
be
contrary
to
the
Constitution
of
the
United
States,
or
7
otherwise
invalid,
the
remaining
provisions
of
this
compact
8
shall
not
be
affected.
9
b.
If
this
compact
is
held
to
be
contrary
to
the
10
constitution
of
any
member
state,
the
compact
shall
remain
in
11
full
force
and
effect
as
to
the
remaining
member
states
and
in
12
full
force
and
effect
as
to
the
affected
member
state
as
to
all
13
severable
provisions.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
creates
a
compact
with
certain
other
states
to
18
phase
out
corporate
welfare.
19
The
bill
defines
“corporate
welfare”
as
any
company-specific
20
or
industry-specific
disbursement
of
funds
by
a
state
or
local
21
government
to
a
particular
company
or
a
particular
industry
in
22
the
form
of
property,
cash,
deferred
tax
liability,
or
reduced
23
tax
liability.
24
The
bill
provides
that
any
state
and
the
District
of
Columbia
25
may
become
a
member
of
the
compact
and
that
member
states
need
26
to
cooperate
to
phase
out
corporate
welfare
for
the
reasons
27
outlined
in
the
bill.
28
The
bill
requires
each
member
state
to
agree
to
refrain
from
29
offering
or
providing
corporate
welfare
to
a
company
currently
30
located
in
any
other
member
state.
Each
member
state
must
also
31
agree
to
refrain
from
offering
or
providing
funds
for
corporate
32
headquarters,
manufacturing
facilities,
office
space,
or
other
33
real
estate
developments
for
any
company
currently
located
34
in
any
other
member
state
if
that
manufacturing
facility,
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headquarters,
or
office
space
will
relocate
to
the
member
state
1
offering
the
incentives.
2
The
bill
excludes
workforce
development
grants
used
by
3
companies
to
fund
employee
training
and
grants
awarded
to
4
companies
before
the
effective
date
of
the
compact.
5
The
bill
provides
that
any
member
state
may
withdraw
from
6
the
compact
with
six
months
prior
written
notice
to
the
chief
7
executive
officer
of
every
other
member
state.
8
The
bill
requires
the
chief
law
enforcement
officer
of
each
9
member
state
to
enforce
the
compact.
The
bill
provides
that
10
any
taxpaying
resident
of
any
member
state
has
standing
in
the
11
courts
of
any
member
state
to
file
suit
to
ask
the
court
to
12
require
the
chief
law
enforcement
officer
of
that
member
state
13
to
enforce
the
compact.
14
The
bill
establishes
a
board
of
member
states.
The
15
appointees
to
the
board
and
the
duties
of
the
board
are
16
outlined
in
the
bill.
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