This week, Congressman Bob Latta (R- Bowling Green) introduced H.R. 6514, the Protecting Jobs in Your State Act of 2010.
H.R. 6514, if passed, would prohibit certain stimulus and disaster relief funds to be used for business relocation incentives. The funds identified under this legislation include funding from the American Recovery and Reinvestment Act ("stimulus package"), and the Small Business Act of 2010. Specifically under this legislation, the funds prohibited may not be used as an incentive for a business to relocate a plant, facility, or other operation, in whole or in part, from one state to another; or to expand such an operation in a state in a manner that will result in a reduction in such an operation in another state.
After the American Recovery and Reinvestment Act (ARRA) was signed into law in 2009, reports surfaced that states were using funds from the ARRA as portions of incentive packages to businesses looking to relocate to their state. In June of 2009, the Dayton Daily News reported that the City of Columbus, Georgia was using stimulus funds to purchase an existing building and construct a new building for National Cash Register to relocate there from their then-headquarters of Dayton, Ohio. In addition to the Dayton, Ohio story, similar stories have been reported in Kansas and New York.
"It is well known now that the stimulus package has been a failure on multiple levels, whether it was the price tag, implementation, or oversight and federal dollars should never be used to pick winners and losers between states when it comes to job creation and retention. As our nation continues to struggle through this recession, the last thing any state needs to worry about is another state poaching jobs from them by using stimulus dollars. The disappointing examples found in Ohio, Kansas, and New York could have been prevented, but with this legislation we can stop it from happening again," Latta stated after introducing the legislation.