The proposed bill introduces a new chapter, CHAPTER 72, titled the "Agreement to Phase Out Corporate Incentives Compact Act," into Title 44 of the General Laws concerning taxation. This act allows any state in the United States and the District of Columbia to become a member of the compact by enacting the agreement in a specified form. It defines key terms such as "Facility," "Party state," "Political subdivision," and "Subsidy," establishing a framework for understanding the compact's provisions.

The act aims to prohibit party states from providing subsidies to private enterprises for the purpose of selectively supporting specific industries or companies, or to incentivize the relocation of facilities from one party state to another or to open new facilities.

The bill designates the governor or their designee as the compact administrator for each party state, responsible for maintaining an accurate list of member states and facilitating the exchange of information among them. The enforcement of the compact will be managed by the attorney general of each member party state, and taxpaying residents of any member party state will have standing in the courts to compel enforcement.

The compact is intended to be liberally construed to achieve its objectives, and it includes provisions for severability, ensuring that if any part of the compact is declared unconstitutional, the remainder will remain valid. The act will take effect upon passage.