The proposed bill introduces a new chapter, titled "Agreement to Phase Out Corporate Incentives Compact Act," into Title 44 of the General Laws concerning taxation. This chapter 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 clarify the scope and intent of the compact.

The bill establishes a prohibition against "anti-poaching," stating that once two or more states have enacted the compact, the governments of the party states, or any political subdivision, shall not provide subsidies to a private enterprise for the purpose of selectively supporting a specific industry or company, or to entice a specific industry or company to relocate an existing facility from one party state to another party state or to open a new facility.

Additionally, the bill designates the governor or their designee as the compact administrator for each party state, responsible for maintaining an accurate list of all party states and facilitating the exchange of information among them. The enforcement of the compact will be overseen 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 of the compact.

The compact is designed to be liberally construed to effectuate its purposes, and it includes provisions for severability, ensuring that if any part of the compact is declared unconstitutional, the validity of the remainder will not be affected. The act will take effect upon passage.