Bill > S628

Introduced Session

This bill prohibits the awarding of any contract that is paid with or out of State funds, or the funds of any independent authority, to an "inverted domestic corporation." The bill also prohibits a public entity of the State from granting a development subsidy to an inverted domestic corporation. The bill defines "inverted domestic corporation" as a company that has been determined to be an inverted company by the U.S. Department of the Treasury or the Internal Revenue Service. The bill provides that a corporation that has been barred from performing federal contracts because it has been determined to be an inverted company under federal law will be an inverted domestic corporation for the purposes of a State contract. The bill's provisions would not apply if application thereof violates any federal law or prevents the receipt of federal funds by the State or a State independent authority. The State Treasurer is directed to promulgate rules and regulations to implement the bill's provisions. The bill requires the recipient of a State development subsidy to submit to the public granting body, annually during the term of the development subsidy, a standing certificate attesting to the legal status of the recipient corporation operating in this State. The bill requires the recipient to pay back the total value of the development subsidy if it becomes an inverted domestic corporation during the term of the subsidy.

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Nilsa Cruz-Perez (D)*,  Nia Gill (D)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/12/2016)