Source: https://www.nysenate.gov/legislation/bills/2019/s3061
Timestamp: 2020-05-31 03:37:14
Document Index: 670238384

Matched Legal Cases: ['Art 17', '§250', '§  250', '§ 251', '§ 252', '§ 253', '§ 254', '§  255', '§ 256', '§  257', '§  2']

NY State Senate Bill S3061
senate Bill S3061
Establishes an interstate compact prohibiting company-specific subsidies
Get Status Alerts for S3061
Feb 01, 2019 referred to finance
S3061 (ACTIVE) - Details
Add Art 17 §§250 - 257, St Fin L
S3061 (ACTIVE) - Summary
Provides that no compacting state shall permit company-specific subsidies and shall not provide any company-specific subsidy to any company whose headquarters, manufacturing facilities, office space or other real estate developments are located in their state or to incentivize any company to locate their headquarters, manufacturing facilities, office space or other real estate developments in their state.
S3061 (ACTIVE) - Sponsor Memo
BILL NUMBER: S3061
An act to amend the state finance law, in relation to creating an inter-
state compact prohibiting company-specific subsidies
This bill aims to create a mechanism for collaboration by a collection
of states joining into a compact focused on enacting an inter-state
compact to eliminating and prohibiting company-specific corporate
Section 1: The state finance law is amended by adding a new article 17
which creates the Interstate Compact Prohibiting Company-Specific Subsi-
dies. This section provides technical definitions, provides the mission
and operations of the compact, sets forth the composition of the member-
ship of the board administering the compact, its bylaws and the process
by which the compact's members will operate and be administered.
Section 2: Provides for the effective date of this act. This act shall
take effect upon the adoption of the interstate compact prohibiting
company-specific subsidies by two or more states; and provided further
that the comptroller of the state of New York shall notify the legisla-
ture bill drafting commission upon the occurrence of such adoption of
this compact by two or more states.
For decades, cities and states have been incentivized to pursue a "Race
to the Bottom", rolling out increasingly lavish economic welfare poli-
cies whenever multi-national corporations announce plans to move
locations, build new headquarters, or expand operations.  Corporate
executives then sit back and wait as different regions jostle to offer
them the best corporate subsidies package. What transpires next is a
harmful, zero-sum competition between municipalities to aggressively
bundle commercial property tax abatements, job creation tax credits,
investment tax credits, R&D tax credits, and customized job training tax
credits. This practice has grown to become a $45 billion economic tax
break industrial complex designed to extract wealth and resources from
the public for the disproportionate benefit of corporations.
The End of Corporate Welfare Act of 2019 calls for an end to this
"bidding war" by banning the use of company-specific corporate welfare
incentives between cities and states. It would create a level playing
field by refusing to engage in the race to the bottom that large corpo-
rations and their executives have come to rely on.  Cooperation between
cities and states that refuse to engage in the extortion of local
resources will end the enrichment of large companies at taxpayers'
expense, and return greater agency, wealth, and independence to communi-
Such an interstate agreement will eliminate secretive, opaque negoti-
ations between government officials and corporate executives, which have
time and again transferred billions to corporations with little to show
in return. Multi-national corporations can no longer play municipalities
off one another when all cities and states band together and refuse to
participate in the race to the bottom. This act will end decades of
wasteful spending, which have by and large not led to meaningful econom-
ic benefits and benefited none but a few of the wealthiest companies.
This act will save taxpayers of New York State billions of dollars by
preventing corporate giveaways.
This act shall take effect immediately and as defined in Section 2.
S3061 (ACTIVE) - Bill Text download pdf
INTERSTATE COMPACT PROHIBITING
COMPANY-SPECIFIC SUBSIDIES
SECTION 250. SHORT TITLE; PURPOSE.
251. DEFINITIONS.
252. COMPACT.
253. ESTABLISHMENT OF THE BOARD.
254. ENTRY INTO COMPACT, WITHDRAWAL AND TERMINATION.
255. AMENDMENTS TO THE COMPACT.
256. CONSTRUCTION AND SEVERABILITY.
257. ADMINISTRATION; EXPENSES.
§  250.  SHORT  TITLE; PURPOSE. THIS ARTICLE SHALL BE KNOWN AND MAY BE
CITED AS THE "INTERSTATE COMPACT PROHIBITING COMPANY-SPECIFIC SUBSIDES".
THE PURPOSE OF THIS COMPACT IS, THROUGH MEANS OF JOINT  AND  COOPERATIVE
ACTION AMONG THE COMPACTING STATES, TO ELIMINATE COMPANY-SPECIFIC SUBSI-
§ 251. DEFINITIONS. AS USED IN THIS COMPACT, UNLESS THE CONTEXT CLEAR-
LY  INDICATES  OTHERWISE,  THE  FOLLOWING TERMS SHALL HAVE THE FOLLOWING
1. "COMPANY-SPECIFIC SUBSIDY" SHALL MEAN COMPANY-SPECIFIC  TAX  INCEN-
TIVES  INCLUDING ANY CHANGE IN THE GENERAL TAX RATE OR VALUATION OFFERED
OR PRESENTED BY THE STATE TO A SPECIFIC COMPANY THAT IS NOT AVAILABLE TO
OTHER SIMILARLY SITUATED COMPANIES AND COMPANY-SPECIFIC GRANTS INCLUDING
LBD08668-01-9
S. 3061                             2
ANY DISBURSEMENT OF FUNDS, PROPERTY,  CASH  OR  DEFERRED  TAX  LIABILITY
OFFERED  BY  THE STATE TO A SPECIFIC COMPANY. THE TERM "COMPANY-SPECIFIC
SUBSIDY" SHALL NOT INCLUDE WORKFORCE  DEVELOPMENT  GRANTS  THAT  PROVIDE
FUNDS FOR THE PURPOSE OF TRAINING EMPLOYEES.
2.  "BY-LAWS"  MEAN  THOSE  BY-LAWS  ESTABLISHED  BY THE BOARD FOR ITS
GOVERNANCE OR FOR  DIRECTING  OR  CONTROLLING  THE  BOARD'S  ACTIONS  OR
3.  "COMPACTING  STATE" MEANS ANY STATE WHICH HAS ENACTED THIS COMPACT
LEGISLATION AND WHICH HAS NOT WITHDRAWN OR BEEN TERMINATED  PURSUANT  TO
SECTION TWO HUNDRED FIFTY-FOUR OF THIS ARTICLE.
4.  "BOARD" MEANS THE "INTERSTATE COMPACT PROHIBITING COMPANY-SPECIFIC
SUBSIDIES BOARD" ESTABLISHED BY THE COMPACT.
5. "STATE" MEANS ANY STATE, DISTRICT OR TERRITORY OF THE UNITED STATES
6. "COMPANY" MEANS ANY PROPRIETORSHIP,  PARTNERSHIP,  CORPORATION,  OR
§ 252. COMPACT. 1. THE COMPACTING STATES HEREBY CREATE AND ESTABLISH A
COMPACT  TO  PROHIBIT  ALL  COMPANY-SPECIFIC  SUBSIDIES. SUCH COMPACTING
STATES SHALL NOT PROVIDE ANY COMPANY-SPECIFIC  SUBSIDY  TO  ANY  COMPANY
WHOSE HEADQUARTERS, MANUFACTURING FACILITIES, OFFICE SPACE OR OTHER REAL
ESTATE  DEVELOPMENTS  ARE  LOCATED  IN THEIR STATE OR TO INCENTIVIZE ANY
COMPANY TO LOCATE THEIR HEADQUARTERS, MANUFACTURING  FACILITIES,  OFFICE
SPACE OR OTHER REAL ESTATE DEVELOPMENTS IN THEIR STATE.
2. EXISTING COMPANY-SPECIFIC SUBSIDIES SHALL NOT BE PROHIBITED BY THIS
COMPACT,  HOWEVER,  ANY MODIFICATION TO THE TERMS OF ANY EXISTING COMPA-
NY-SPECIFIC SUBSIDY SHALL BE CONSIDERED A NEW  COMPANY-SPECIFIC  SUBSIDY
AND SHALL NOT BE PERMITTED UNDER THE TERMS OF THE COMPACT.
§ 253. ESTABLISHMENT OF THE BOARD. 1. FOR THE PURPOSE OF ADMINISTERING
THE  PROVISIONS OF THIS COMPACT AND TO SERVE AS A GOVERNING BODY FOR THE
RESOLUTION OF ALL MATTERS RELATING TO THE OPERATION OF THIS  COMPACT,  A
BOARD  OF  COMPACT  ADMINISTRATORS  IS ESTABLISHED.   THE BOARD SHALL BE
COMPOSED OF ONE REPRESENTATIVE FROM EACH OF THE COMPACTING STATES TO  BE
KNOWN  AS  THE COMPACT ADMINISTRATOR. THE COMPACT ADMINISTRATOR SHALL BE
APPOINTED BY THE GOVERNOR OF EACH PARTICIPATING STATE  AND  SHALL  SERVE
AND BE SUBJECT TO REMOVAL IN ACCORDANCE WITH THE LAWS OF THE STATE HE OR
SHE REPRESENTS. A COMPACT ADMINISTRATOR MAY PROVIDE FOR THE DISCHARGE OF
HIS  OR HER DUTIES AND THE PERFORMANCE OF HIS OR HER FUNCTION AS A BOARD
MEMBER BY AN ALTERNATE. AN ALTERNATE SHALL  NOT  BE  ENTITLED  TO  SERVE
UNLESS WRITTEN NOTIFICATION OF HIS OR HER IDENTITY HAS BEEN GIVEN TO THE
2. THE BOARD SHALL CONVENE AT LEAST ONCE ANNUALLY AND SHALL BE RESPON-
SIBLE  FOR  COLLECTING  TESTIMONY FROM INTERESTED PARTIES INCLUDING, BUT
NOT  LIMITED  TO,  COMPACTING  STATES,  ORGANIZATIONS  AND  ASSOCIATIONS
REPRESENTING  STATE LEGISLATORS, TAXPAYERS AND SUBJECT MATTER EXPERTS ON
HOW THE COMPACT CAN BE IMPROVED AND STRENGTHENED.
3. EACH MEMBER OF THE BOARD OF COMPACT ADMINISTRATORS SHALL  BE  ENTI-
TLED  TO  ONE  VOTE. NO ACTION OF THE BOARD SHALL BE BINDING UNLESS AT A
MEETING AT WHICH A MAJORITY OF THE TOTAL NUMBER OF THE BOARD'S VOTES ARE
CAST IN FAVOR THEREOF. ACTION BY THE BOARD SHALL BE ONLY AT A MEETING AT
WHICH A MAJORITY OF THE COMPACTING STATES ARE REPRESENTED.
4. THE BOARD SHALL ELECT ANNUALLY FROM  ITS  MEMBERSHIP  A  CHAIR  AND
5.  THE BOARD SHALL ADOPT BY-LAWS NOT INCONSISTENT WITH THE PROVISIONS
OF THIS COMPACT OR THE LAWS OF A COMPACTING STATE FOR THE CONDUCT OF ITS
BUSINESS AND SHALL HAVE THE POWER TO AMEND AND RESCIND ITS BY-LAWS.
S. 3061                             3
6. THE BOARD MAY ACCEPT FOR ANY OF ITS PURPOSES  AND  FUNCTIONS  UNDER
THIS  COMPACT  ANY  AND  ALL  DONATIONS AND GRANTS OF MONIES, EQUIPMENT,
SUPPLIES, MATERIALS AND SERVICES  CONDITIONAL  OR  OTHERWISE,  FROM  ANY
STATE,  THE  UNITED  STATES OR ANY GOVERNMENTAL AGENCY, AND MAY RECEIVE,
UTILIZE AND DISPOSE OF SAME.
7.  THE BOARD MAY CONTRACT WITH, OR ACCEPT SERVICES OR PERSONNEL FROM,
ANY GOVERNMENTAL OR INTERGOVERNMENTAL AGENCY, INDIVIDUAL, FIRM OR CORPO-
RATION, OR ANY PRIVATE NONPROFIT ORGANIZATION OR INSTITUTION.
8. THE BOARD SHALL FORMULATE  ALL  NECESSARY  PROCEDURES  AND  DEVELOP
UNIFORM  FORMS  AND  DOCUMENTS  FOR ADMINISTERING THE PROVISIONS OF THIS
COMPACT. ALL PROCEDURES AND FORMS ADOPTED PURSUANT TO BOARD ACTION SHALL
BE CONTAINED IN A COMPACT MANUAL.
§ 254. ENTRY INTO COMPACT, WITHDRAWAL AND TERMINATION. 1. THIS COMPACT
SHALL BECOME EFFECTIVE AT SUCH TIMES AS IT IS ADOPTED IN A SUBSTANTIALLY
SIMILAR FORM BY TWO OR MORE STATES.
2. (A) ENTRY INTO THE COMPACT SHALL BE MADE BY RESOLUTION OF RATIFICA-
TION EXECUTED BY THE AUTHORIZED OFFICIALS  OF  THE  APPLYING  STATE  AND
SUBMITTED TO THE CHAIR OF THE BOARD.
(B)  THE  RESOLUTION SHALL SUBSTANTIALLY BE IN THE FORM AND CONTENT AS
PROVIDED IN THE COMPACT MANUAL AND SHALL INCLUDE THE FOLLOWING:
(I) A CITATION OF THE AUTHORITY FROM WHICH THE STATE IS  EMPOWERED  TO
BECOME A PARTY TO THIS COMPACT; AND
(II)  AN AGREEMENT OF COMPLIANCE WITH THE TERMS AND PROVISIONS OF THIS
(C) THE EFFECTIVE DATE OF ENTRY SHALL BE  SPECIFIED  BY  THE  APPLYING
STATE  BUT SHALL NOT BE LESS THAN SIXTY DAYS AFTER NOTICE HAS BEEN GIVEN
BY THE CHAIR OF THE BOARD OF THE COMPACT ADMINISTRATORS.
3. A COMPACTING STATE MAY WITHDRAW FROM PARTICIPATING IN THIS  COMPACT
BY  OFFICIAL  WRITTEN NOTICE TO EACH PARTICIPATING STATE, BUT WITHDRAWAL
SHALL NOT BECOME EFFECTIVE UNTIL NINETY DAYS AFTER THE NOTICE  OF  WITH-
DRAWAL IS GIVEN. THE NOTICE SHALL BE DIRECTED TO THE COMPACT ADMINISTRA-
TOR  OF  EACH  COMPACTING STATE. NO WITHDRAWAL OF ANY STATE SHALL AFFECT
THE VALIDITY OF THIS COMPACT AS TO THE REMAINING PARTICIPATING STATES.
4. IF THE BOARD DETERMINES THAT ANY COMPACTING STATE HAS AT  ANY  TIME
VIOLATED  ANY OF THE TERMS OR BY-LAWS OF THE COMPACT, THEN, AFTER NOTICE
AND HEARING AS SET FORTH IN THE BY-LAWS, MAY TERMINATE SUCH  STATE  FROM
THE COMPACT IF A WILLFUL VIOLATION HAS BEEN FOUND.
§  255. AMENDMENTS TO THE COMPACT. 1. THIS COMPACT MAY BE AMENDED FROM
TIME TO TIME. AMENDMENTS SHALL BE PRESENTED IN RESOLUTION  FORM  TO  THE
CHAIR  OF  THE BOARD OF COMPACT ADMINISTRATORS AND SHALL BE INITIATED BY
ONE OR MORE PARTICIPATING STATES.
2. ADOPTION OF AN AMENDMENT SHALL REQUIRE ENDORSEMENT BY  ALL  PARTIC-
IPATING  STATES AND SHALL BECOME EFFECTIVE THIRTY DAYS AFTER THE DATE OF
THE LAST ENDORSEMENT.
§ 256. CONSTRUCTION AND SEVERABILITY. THIS COMPACT SHALL BE  LIBERALLY
CONSTRUED SO AS TO EFFECTUATE THE PURPOSES STATED HEREIN. THE PROVISIONS
OF  THIS  COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE
OR PROVISION OF THIS COMPACT IS DECLARED TO BE CONTRARY TO THE CONSTITU-
TION OF ANY COMPACTING STATE OR OF THE UNITED STATES, OR THE APPLICABIL-
ITY THEREOF TO ANY GOVERNMENT, AGENCY,  INDIVIDUAL  OR  CIRCUMSTANCE  IS
HELD INVALID, THE VALIDITY OF THE REMAINDER OF THIS COMPACT SHALL NOT BE
AFFECTED  THEREBY. IF THIS COMPACT SHALL BE HELD CONTRARY TO THE CONSTI-
TUTION OF ANY COMPACTING STATE, THE COMPACT SHALL REMAIN IN  FULL  FORCE
AND EFFECT AS TO THE REMAINING STATES AND IN FULL FORCE AND EFFECT AS TO
THE PARTICIPATING STATE AFFECTED AS TO ALL SEVERABLE MATTERS.
S. 3061                             4
§  257.  ADMINISTRATION;  EXPENSES. 1. THE COMPTROLLER OF THE STATE OF
NEW YORK SHALL FURNISH TO THE APPROPRIATE AUTHORITIES OF THE  COMPACTING
STATES  ANY  INFORMATION OR DOCUMENTS REASONABLY NECESSARY TO FACILITATE
THE ADMINISTRATION OF THIS COMPACT.
2.  THE  COMPACT  ADMINISTRATOR FROM THIS STATE IS NOT ENTITLED TO ANY
ADDITIONAL COMPENSATION FOR HIS OR HER SERVICE AS SUCH BUT  IS  ELIGIBLE
FOR  REIMBURSEMENT  FOR  EXPENSES INCURRED IN CONNECTION WITH HIS OR HER
RESPONSIBILITIES AS COMPACT ADMINISTRATOR IN THE SAME MANNER AS EXPENSES
INCURRED IN CONNECTION WITH OTHER RESPONSIBILITIES OF HIS OR HER  OFFICE
§  2.  This  act shall take effect upon the adoption of the interstate
compact prohibiting company-specific subsidies by two  or  more  states;
and provided further that the comptroller of the state of New York shall
such adoption of the  interstate  compact  prohibiting  company-specific
subsidies  by  two or more states in order that the commission may main-
the  laws  of  the  state  of  New  York in furtherance of effecting the