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," which are essential 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 existing facilities from one party state to another or to open new facilities.

Additionally, the bill establishes a framework for the administration and enforcement of the compact, designating the governor or their designee as the compact administrator for each party state. The compact administrator is responsible for maintaining an accurate list of all party states and for exchanging necessary information with other party states. The attorney general of each member party state is tasked with enforcing the compact, and taxpaying residents of any member party state have the standing to compel enforcement through the courts.

The compact is designed to be liberally construed to achieve its objectives, and it includes provisions for severability, ensuring that if any part of the compact is deemed unconstitutional, the validity of the remainder remains intact. The act will take effect upon passage.