SB 1074 - HB 1096
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 14, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
SB 1074 - HB 1096
SUMMARY OF BILL: Prohibits an employer seeking an economic development incentive
from entering a community benefits agreement or similar legal contract if the agreement or contract
imposes obligations or conditions on the employer regarding employment practices, benefits, or
operations that are not directly related to the performance of the employer’s duties under the
economic development incentive.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. §§ 4-3-731(f) and 4-3-739(b):
o Prior to contracting to award an economic development incentive, the Department
of Economic and Community Development (ECD) must execute a separate
agreement with the recipient that ECD reserves the right to recover the amount of
money, grants, funds, or other incentives disbursed by ECD under certain
circumstances; and
o To be eligible for an economic development incentive, an employer must not:
▪ Grant recognition rights for employees on the basis of signed union
authorization cards if the selection of a bargaining representative may
instead be conducted through a secret ballot election conducted by the
National Labor Relations Board;
▪ Voluntarily disclose an employee’s personal contact information to a labor
organization, or third party acting on behalf of a labor organization, without
the employee’s prior written consent, unless otherwise required by law; or
▪ Require a subcontractor performing work for or providing services to the
employer to engage in prohibited activities.
• The proposed legislation adds an additional provision prohibiting an employer from
entering into a community benefits agreement or any similar legal contract if it imposes
obligations or conditions on the employer regarding employment practices, benefits, or
operations that are not directly related to the performance of the employer’s duties under
the economic incentive.
• Per the proposed legislation, a “community benefits agreement” is an agreement or
understanding between an employer and a community group, organization, or other third-
party, other than the state of Tennessee, that:
o Contractually binds the employer to fund or provide specific attributes, services or
amenities, mitigations, or anything of value to a community or organization;
SB 1074 - HB 1096 2
o Establishes employment criteria including wage and hour criteria; or
o Provides for or requires the employer to utilize a trade union or other unionized
workforce where employees collectively bargain with employers for wages, hours, or
working conditions.
• Adding an additional provision to which recipients of economic development incentives
must comply will not significantly impact ECD’s operations or the disbursement of
economic development incentives to qualifying persons or entities.
• Therefore, any fiscal impact is estimated to be not significant.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation will have no significant impact on the total amount of economic
development incentives disbursed by ECD to businesses in this state nor the overall
economic activity in the state.
• Any impact to commerce or jobs in this state is not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director