Tennessee House Bill HB1096

Tennessee 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/10/25
• Refer: 2/19/25
• Refer: 2/26/25
• Engrossed: 3/4/25
• Enrolled: 3/25/25
• Passed: 4/3/25
• Chaptered: 4/4/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, relative to community benefits agreements.

Impact

The law seeks to clarify and define the terms under which community benefits agreements can be utilized, thus potentially affecting the landscape of economic development initiatives within the state. By limiting the requirements businesses can impose through community agreements, it is suggested that HB1096 may streamline the process for businesses looking to engage in development projects. However, by placing restrictions on labor conditions and community benefits, the bill may also limit the scope of negotiations that could have addressed specific local community needs or labor standards.

Summary

House Bill 1096 amends Tennessee Code Annotated to provide a framework for community benefits agreements (CBAs) associated with economic development incentives. It outlines specific definitions for both community benefits agreements and community groups, and stipulates that any agreements entered into must relate directly to the performance of the employer's duties under these incentives. A significant aspect of the bill is the stipulation that employers cannot be bound to obligations regarding employment practices that do not align directly with state-defined economic development terms. The enactment of this bill is intended to take effect on July 1, 2025.

Sentiment

General sentiment around HB1096 appears to be mixed. Proponents argue it offers clarity and fairness for businesses seeking incentives, allowing them to operate without excessive regulatory burdens. Conversely, detractors may voice concerns over the reduced ability for community organizations to negotiate favorable employment conditions or benefits through covenants with employers, potentially impacting workers' rights and local community development objectives.

Contention

Notable contention surrounding HB1096 lies in the balance between facilitating economic growth and protecting community interests. Opposing views highlight the risks that come with limiting the conditions under which community benefits can be negotiated, suggesting that this could lead to a lack of tailored economic solutions that consider local workforce needs. As the bill stands, it positions the state as a more dominant force over local economic negotiations, which could unify development standards at the potential risk of local specificity and responsiveness.