Assembly Bill A1090

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1090
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. KIM, STECK, FORREST -- read once and referred to
   the Committee on Economic Development
 
 AN ACT to amend the state finance law, in relation  to  establishing  an
   interstate compact agreement to phase out corporate giveaways
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding a new article 17
 to read as follows:
                                ARTICLE 17
            INTERSTATE COMPACT AGREEMENT TO PHASE OUT CORPORATE
                                 GIVEAWAYS
 SECTION 250. INTERSTATE COMPACT AGREEMENT TO PHASE OUT  CORPORATE  GIVE-
                AWAYS.
   § 250. INTERSTATE  COMPACT AGREEMENT TO PHASE OUT CORPORATE GIVEAWAYS.
 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE "AGREEMENT TO PHASE  OUT
 CORPORATE GIVEAWAYS ACT".
   ARTICLE 1. MEMBERSHIP. ANY STATE OF THE UNITED STATES AND THE DISTRICT
 OF  COLUMBIA MAY BECOME A MEMBER OF THIS COMPACT BY ENACTING THIS AGREE-
 MENT IN SUBSTANTIALLY THE FOLLOWING FORM.
   ARTICLE 2. DEFINITIONS. AS USED IN THIS COMPACT,  UNLESS  THE  CONTEXT
 CLEARLY  INDICATES OTHERWISE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   A. "CORPORATE GIVEAWAY" MEANS ANY COMPANY-SPECIFIC OR INDUSTRY-SPECIF-
 IC DISBURSEMENT OF FUNDS VIA PROPERTY, CASH OR DEFERRED OR  REDUCED  TAX
 LIABILITY  BY  A  STATE  OR  LOCAL GOVERNMENT TO A PARTICULAR COMPANY OR
 INDUSTRY.
   B. "MEMBER STATE" MEANS ANY STATE OR THE DISTRICT OF COLUMBIA THAT HAS
 ENACTED A STATUTE AGREEING TO THIS COMPACT.
   C. "COMPANY-SPECIFIC TAX INCENTIVE" IS ANY CHANGE IN THE  GENERAL  TAX
 RATE OR VALUATION OFFERED OR PRESENTED TO A SPECIFIC COMPANY THAT IS NOT
 AVAILABLE TO OTHER SIMILARLY-SITUATED COMPANIES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00900-01-5
              

 A. 1090                             2
 
   D. "COMPANY-SPECIFIC GRANT" IS ANY DISBURSEMENT OF FUNDS VIA PROPERTY,
 CASH  OR  DEFERRED  TAX  LIABILITY BY THE STATE OR LOCAL GOVERNMENT TO A
 PARTICULAR COMPANY.
   E.  "LOCATED  IN ANY OTHER MEMBER STATE" MEANS ANY CORPORATE HEADQUAR-
 TERS, OFFICE SPACE, MANUFACTURING FACILITY OR OTHER REAL ESTATE DEVELOP-
 MENT THAT IS PHYSICALLY LOCATED IN ANOTHER MEMBER STATE, WHETHER OR  NOT
 THE COMPANY HAS OTHER PROPERTY IN THE MEMBER STATE.
   ARTICLE 3. FINDINGS. THE MEMBER STATES FIND THAT:
   A.  CORPORATE GIVEAWAYS ARE AMONG THE LEAST EFFECTIVE USES OF TAXPAYER
 DOLLARS TO CREATE AND MAINTAIN JOBS;
   B. LOCAL AND STATE LEADERS ARE IN A PRISONERS'  DILEMMA  WHERE  IT  IS
 BEST  FOR  ALL TO CREATE A LEVEL PLAYING FIELD FOR ALL EMPLOYERS WITHOUT
 ANY CORPORATE GIVEAWAYS, BUT EACH LEVEL OF GOVERNMENT HAS  AN  INCENTIVE
 TO SUBSIDIZE A COMPANY, GENERATING A RACE TO THE BOTTOM;
   C.  GOVERNMENTS  SHOULD  ATTRACT AND RETAIN COMPANIES BASED ON GENERAL
 CONDITIONS (INCLUDING BUT  NOT  LIMITED  TO  MODERN  INFRASTRUCTURE,  AN
 EDUCATED WORKFORCE, A CLEAN ENVIRONMENT, AND A FAVORABLE TAX AND REGULA-
 TORY  CLIMATE), NOT BASED ON A SPECIFIC GRANT FOR A PARTICULAR COMPANY;
   D.  CORPORATE  GIVEAWAYS  FUEL BUSINESS INEQUALITY AS ONLY THE LARGEST
 BUSINESSES RECEIVE THE VAST MAJORITY OF THESE FUNDS;
   E. A REASONABLE FIRST STEP IN PHASING OUT CORPORATE  GIVEAWAYS  IS  AN
 ANTI-POACHING AGREEMENT AMONG STATE GOVERNMENTS PROHIBITING STATE COMPA-
 NY-SPECIFIC  TAX  INCENTIVES  AND  STATE  COMPANY-SPECIFIC  GRANTS AS AN
 INDUCEMENT FOR ENTITIES TO RELOCATE EXISTING FACILITIES;
   F. CREATING A NATIONAL BOARD OF GUBERNATORIAL APPOINTEES CHARGED  WITH
 FINDING  CONSENSUS  AROUND IMPROVEMENTS TO THIS AGREEMENT OVER TIME IN A
 PHASED APPROACH WILL ASSIST STATE AND LOCAL GOVERNMENTS IN ESCAPING FROM
 THE PRISONERS' DILEMMA AND IMPLEMENTING A LEVEL PLAYING  FIELD  FOR  ALL
 EMPLOYERS.
   ARTICLE  4. ANTI-POACHING PROHIBITION. EACH MEMBER STATE IS PROHIBITED
 FROM OFFERING OR PROVIDING ANY COMPANY-SPECIFIC TAX INCENTIVE OR  COMPA-
 NY-SPECIFIC  GRANT  TO ANY ENTITY FOR A CORPORATE HEADQUARTERS, MANUFAC-
 TURING FACILITY, OFFICE SPACE OR OTHER REAL ESTATE  DEVELOPMENT  LOCATED
 IN  ANY  OTHER MEMBER STATE AS AN INDUCEMENT FOR THE CORPORATE HEADQUAR-
 TERS, MANUFACTURING FACILITY, OFFICE SPACE OR OTHER REAL ESTATE DEVELOP-
 MENT TO RELOCATE TO THE OFFERING MEMBER STATE.
   ARTICLE 5. EXCLUSIONS. WORKFORCE DEVELOPMENT GRANTS THAT TRAIN EMPLOY-
 EES ARE NOT SUBJECT TO THIS AGREEMENT. COMPANY-SPECIFIC  TAX  INCENTIVES
 OR  COMPANY-SPECIFIC  GRANTS  FROM  LOCAL GOVERNMENTS ARE NOT SUBJECT TO
 THIS AGREEMENT. STATE COMPANY-SPECIFIC TAX INCENTIVES OR STATE  COMPANY-
 SPECIFIC  GRANTS  TO  ENTITIES FOR CORPORATE HEADQUARTERS, OFFICE SPACE,
 MANUFACTURING FACILITIES OR REAL ESTATE DEVELOPMENTS LOCATED WITHIN  ITS
 OWN STATE ARE NOT SUBJECT TO THIS AGREEMENT.
   ARTICLE  6. WITHDRAWAL. ANY MEMBER STATE MAY WITHDRAW FROM THIS AGREE-
 MENT WITH SIX MONTHS' NOTICE AND SHALL DO SO IN  WRITING  TO  THE  CHIEF
 EXECUTIVE OFFICER OF EVERY OTHER MEMBER STATE TO THE AGREEMENT.
   ARTICLE  7.  ENFORCEMENT. A. THE CHIEF LAW ENFORCEMENT OFFICER OF EACH
 MEMBER STATE SHALL ENFORCE THIS COMPACT.
   B. A TAXPAYING RESIDENT OF ANY MEMBER STATE HAS STANDING IN THE COURTS
 OF ANY MEMBER STATE TO REQUIRE THE CHIEF LAW ENFORCEMENT OFFICER OF THAT
 MEMBER STATE TO ENFORCE THIS COMPACT.
   ARTICLE 8. NATIONAL BOARD TO DRAFT SUGGESTED IMPROVEMENTS OVER TIME TO
 THE AGREEMENT. A NATIONAL BOARD OF THE AGREEMENT TO PHASE OUT  CORPORATE
 GIVEAWAYS  ACT  IS  ESTABLISHED  BY THIS AGREEMENT. EACH CHIEF EXECUTIVE
 OFFICER OF EACH MEMBER STATE SHALL APPOINT ONE MEMBER TO THE BOARD.  THE
 BOARD  SHALL  ACCEPT  APPOINTEES  FROM  NON-MEMBER  STATES  THAT WISH TO
 A. 1090                             3
 
 APPOINT A MEMBER OF THE BOARD. THE PURPOSE OF THE BOARD  IS  TO  PUBLISH
 SUGGESTED  REVISIONS  TO  THIS  AGREEMENT  IN  DECEMBER OF EVERY YEAR TO
 CONTINUE TO PHASE OUT THOSE FORMS OF CORPORATE GIVEAWAYS THAT THE  BOARD
 FINDS  REASONABLE TO INCLUDE AS SUGGESTED REVISIONS TO THE AGREEMENT FOR
 MEMBER STATES TO CONSIDER IMPLEMENTING.   THE  BOARD  SHALL  CONVENE  AT
 LEAST  ANNUALLY, ELECT OFFICERS FROM ITS MEMBERSHIP, ESTABLISH RULES AND
 PROCEDURES FOR ITS GOVERNANCE AND PUBLISH A REPORT IN DECEMBER OF  EVERY
 YEAR  THAT  INCLUDES SUGGESTED REVISIONS AND IMPROVEMENTS TO THIS AGREE-
 MENT. THE BOARD SHALL COLLECT TESTIMONY  FROM  ALL  INTERESTED  PARTIES,
 INCLUDING ORGANIZATIONS AND ASSOCIATIONS REPRESENTING STATE LEGISLATORS,
 TAXPAYERS  AND  SUBJECT  MATTER  EXPERTS  ON  HOW  THE  AGREEMENT CAN BE
 IMPROVED AND STRENGTHENED.
   ARTICLE 9. CONSTRUCTION AND SEVERABILITY. THIS COMPACT SHALL BE LIBER-
 ALLY CONSTRUED SO AS TO EFFECTUATE ITS PURPOSES. IF ANY PHRASE,  CLAUSE,
 SENTENCE  OR  PROVISION  OF  THIS  COMPACT,  OR THE APPLICABILITY OF ANY
 PHRASE, CLAUSE, SENTENCE OR PROVISION OF THIS COMPACT TO ANY GOVERNMENT,
 AGENCY, PERSON OR CIRCUMSTANCE IS DECLARED IN  A  FINAL  JUDGMENT  BY  A
 COURT  OF  COMPETENT  JURISDICTION TO BE CONTRARY TO THE CONSTITUTION OF
 THE UNITED STATES OR IS OTHERWISE HELD  INVALID,  THE  VALIDITY  OF  THE
 REMAINDER OF THIS COMPACT AND THE APPLICABILITY OF THE REMAINDER OF THIS
 COMPACT  TO  ANY GOVERNMENT, AGENCY, PERSON OR CIRCUMSTANCE SHALL NOT BE
 AFFECTED.
   IF THIS COMPACT IS HELD TO BE CONTRARY  TO  THE  CONSTITUTION  OF  ANY
 MEMBER  STATE,  THE  COMPACT SHALL REMAIN IN FULL FORCE AND EFFECT AS TO
 THE REMAINING MEMBER STATES AND IN FULL  FORCE  AND  EFFECT  AS  TO  THE
 AFFECTED MEMBER STATE AS TO ALL SEVERABLE MATTERS.
   §  2.  This  act shall take effect upon the adoption of the interstate
 compact agreement to phase  out  corporate  giveaways  by  two  or  more
 states;  and  provided  further that the comptroller of the state of New
 York shall notify the legislative  bill  drafting  commission  upon  the
 occurrence of such adoption of the interstate compact agreement to phase
 out  corporate giveaways by two or more states in order that the commis-
 sion may maintain an accurate and timely  effective  data  base  of  the
 official  text  of  the  laws of the State of New York in furtherance of
 effecting the provisions of  section  44  of  the  legislative  law  and
 section 70-b of the public officers law.