HB 735 Summary

• Adopts the Interstate Compact to Phase Out Corporate Welfare, allowing Hawaii to join with other states in restricting company-specific subsidies.

• Prohibits member states from offering company-specific tax incentives, grants, or other funds to companies already located in other member states.

• Excludes workforce development grants for employee training from the compact restrictions.

• Establishes a national board composed of appointees from member states to meet annually, collect stakeholder input, and publish annual recommendations for expanding the compact's restrictions on corporate welfare.

• Takes effect July 1, 2023; allows any state or the District of Columbia to join, and permits withdrawal with six months' written notice.