“PRISONERS” OF PRIVATE INDUSTRY: ECONOMIC DEVELOPMENT AND STATE SUNSHINE LAWS

There is an ongoing push by governments to keep secret their negotiations with private businesses, resulting in a state-eat-state battle for jobs, with the governments often offering potential businesses millions of dollars in tax breaks and other incentives. A tire factory could pop up next door and community members may not know about it until after the deal is signed. Some states exempt such negotiations in their sunshine laws. Some include such exemptions in the codes that govern economic development agencies themselves rather than in the sunshine law. Responses by courts to such secrecy has been mixed. This article reviews fifty state codes to determine whether officials are free to negotiate behind closed doors, and examines relevant case law. It also offers recommendations for policy changes to ensure transparency in such negotiations.