HB132 Alabama 2020 Session

Summary

Primary Sponsor

Andrew SorrellAuditor

Republican

Session

Regular Session 2020

Title

Interstate Compact to Phase Out Corporate Giveaways, established, membership, terms, termination, provided

Summary

HB 132 would create an Interstate Compact to Phase Out Corporate Giveaways, a multi-state agreement that bans state incentives aimed at luring companies to relocate facilities between member states.

What This Bill Does

It bans states from providing company-specific tax incentives or grants to lure a company's HQ or facilities to relocate into that state from another member state. It sets exclusions for workforce development grants and incentives given within a state's own borders, or by local governments. It creates enforcement mechanisms and a national board to propose annual revisions to the compact.

Who It Affects

• Member state governments would be bound by the prohibition and responsible for enforcement; they can also withdraw from the compact with notice.
• Businesses and taxpayers would be affected because company-specific incentives or grants tied to relocation between member states would no longer be available, potentially changing competition for location decisions.

Key Provisions

• Article 1 establishes that any U.S. state or the District of Columbia may join by enacting the agreement.
• Article 2 defines key terms: company-specific grant, company-specific tax incentive, corporate giveaway, and what counts as located in another member state.
• Article 4 prohibits each member state from offering any company-specific tax incentive or grant to relocate facilities from another member state to the offering state.
• Article 5 lists exclusions: workforce development grants; local government incentives; state incentives within their own state for a company’s HQ or facilities are not subject to the compact.
• Article 6 allows withdrawal by any member state with six months' written notice.
• Article 7 assigns enforcement to each member state's chief law enforcement officer and gives residents standing to enforce.
• Article 8 creates a national board to draft annual suggested improvements, oversee revisions, and collect testimony.
• Article 10 states the compact becomes effective after two or more states adopt it.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Compacts