Tennessee Senate Bill SB1074

Tennessee 2025-2026 Regular Session

• Introduced: 2/5/25
• Chaptered: 4/4/25
• Passed: 4/4/25

Caption

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

Impact

If enacted, the bill will add a new layer of regulation to economic development projects across Tennessee. It emphasizes the importance of community involvement in agreements that come with economic incentives, thereby mandating employers to address community needs and labor conditions. This change is significant as it aims to enhance overall accountability in how such incentives are awarded, ensuring that benefits flow back to the community rather than solely to the businesses involved.

Summary

Senate Bill 1074 seeks to amend the Tennessee Code Annotated by establishing guidelines surrounding community benefits agreements. Specifically, the bill defines a community benefits agreement as a contract between an employer and a community organization that may include provisions related to funding services, establishing employment criteria, and utilizing a unionized workforce. The intent is to ensure that companies receiving economic development incentives contribute positively to their local communities in measurable ways, addressing the terms under which these agreements must be made.

Sentiment

The discussions surrounding SB 1074 display a general trend towards favoring local accountability in economic development. Supporters express that the bill could foster more equitable opportunities for local communities and workers, arguing that it reinforces the idea that businesses must actively contribute to the economic good of the areas they operate in. However, there are concerns that the bill could impose burdens on employers, potentially discouraging investment if the conditions are seen as overly stringent.

Contention

Notable points of contention include how the requirements set forth in community benefits agreements might affect business operations and incentive agreements. Some stakeholders fear that this could complicate negotiations and deter businesses from seeking incentives due to the added requirements. Opponents may argue that while the intention of benefiting the community is commendable, the execution through this bill could lead to unintended consequences that hinder economic growth.