Tennessee House Bill HB0351

Tennessee 2023-2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/30/23
• Refer: 3/19/24
• Refer: 3/26/24
• Refer: 4/17/24
• Engrossed: 4/22/24
• Enrolled: 4/30/24
• Passed: 5/21/24
• Chaptered: 5/28/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 53, relative to industrial development corporations.

Impact

The bill mandates that local governments fund the reasonable costs associated with the creation of these industrial development corporations and reimburse operational costs for staffing and expenditures for a maximum of four years. Following this period, local governments are encouraged to continue their support for these corporations. The bill aims to foster economic growth by aiding small business development, thus potentially revitalizing local economies and improving community engagement in economic development efforts.

Summary

House Bill 351 is designed to amend Tennessee state law concerning industrial development corporations, particularly focusing on their ability to support locally owned and small businesses. This bill enables the establishment and operation of industrial development corporations that will primarily assist businesses that conduct a majority of their operations within a local government’s jurisdiction. The legislation emphasizes the need for these corporations to incorporate neighborhood advisory committees to ensure local community feedback and engagement in their operations.

Sentiment

General sentiment surrounding HB 351 appears to be supportive within the legislature, with a significant majority voting in favor of the bill. Lawmakers expressed optimism that the bill would provide essential support and resources for local businesses, bolstering economic opportunities while allowing communities to have input on the development initiatives through advisory committees. However, there may be concerns about the sustainability of funding after the initial four-year reimbursement period, which could affect the long-term viability of these corporations.

Contention

A notable point of contention within discussions of HB 351 may relate to the reliance on local governments to secure funding for operational costs over time. Critics might argue that this reliance could strain limited local budgets, especially in economically disadvantaged areas. Additionally, ensuring there is sufficient community involvement through neighborhood advisory committees is critical to avoiding perceptions of top-down decision-making where larger entities overshadow the needs of small businesses.