The Nevada governor plans to introduce new legislation that would effectively allow technology companies to form separate local governments within the state.
Local government is a general term for the lowest levels of public administration within a specific sovereign state, and this particular use of the word government refers specifically to the level of administration that is geographically defined and whose powers are limited.
And in Draft A proposal obtained by the Las Vegas Review-Journal, Governor (Steve Sisolak) called for the creation of what he calls innovation zones.
If the legislation is passed, then companies with large sums of money that operate in vertical sectors such as blockchain, artificial intelligence and renewable energy sources, will have the option to form local governments with the same powers and responsibilities as provinces.
This means tech companies will be able to collect taxes, as well as operate things like school boards and courts.
Governor Sisolak sees the idea as a way to pump money without the need to give companies tax breaks or other similar incentives that the government has relied on in the past to attract companies like Tesla.
The bill indicates that the traditional local government model is insufficient alone to provide the flexibility and resources that help make the state a pioneer in attracting and retaining new forms and types of business and promoting economic development in emerging technologies and innovative industries.
The Governor’s Office of Economic Development handles requests and is awarded only to technology companies that own at least 78 square miles of land.
Moreover, that land must be far from any existing town or city, with no one being there in the beginning, The companies will also be required to invest $ 1 billion in their Nevada stake.
At the same time, governance rests on a three-person board of directors, which enjoys the same powers as boards of directors from the country’s commissioners.
A spokesman for the governor told the Las Vegas Review-Journal that he would share additional details about the idea in his next state letter.
Moving past the technical angle, Governor Sisolak’s innovation zones are not much different from the corporate cities that were a major feature of the American landscape before the 1920s.
The company city is the place where the one company that is also the main business owner has all the stores and residences, and is usually larger than a typical village, but It has historically suffered from mismanagement.