HOUSE BILL 1096
By Sexton
SENATE BILL 1074
By Johnson
SB1074
003044
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AN ACT to amend Tennessee Code Annotated, Title 4,
relative to community benefits agreements.
WHEREAS, Tennessee, as part of its economic development policy, has the right to set
terms and conditions in connection with the awarding of economic development incentives; and
WHEREAS, Tennessee, as part of its economic development policy, seeks to play an
integral role in the formulation of economic opportunities, conditions of grants, and general
management of compliance with such awards of money; and
WHEREAS, Tennessee will oftentimes, as part of awarding economic development
incentives, oversee compliance with land use regulations, including management of a
subdivision of property; offer and provide water and wastewater services; require fire protection
systems and mechanical systems for buildings and structures; approve capital grants; and
ensure such is approved by the State Building Commission; and
WHEREAS, Tennessee will oftentimes, as part of awarding economic development
incentives, also require a private business to hire a certain number of new full-time employees,
require a specific amount of company investment, and ensure workers obtain certain skills and
knowledge; and
WHEREAS, Tennessee, as part of its economic development policy, has a vested
interest in seeking to advance and preserve its own interest in projects receiving economic
development incentives as a financer of projects contributing to the state's overall economic
health; now, therefore,
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 4-3-739(a), is amended by adding
the following new, appropriately designated subdivisions:
( ) "Community benefits agreement" means an agreement or understanding of
any type between an employer and a community group, organization, or other third-
party, other than the state, that:
(A) Contractually binds the employer to fund or provide specific
attributes, services or amenities, mitigations, or anything of value to a community
or organization;
(B) Establishes employment criteria of any type or form, including wage
and hour criteria; or
(C) Provides for or requires the employer to utilize a trade union or other
unionized workforce where the employees collectively bargain with employers for
wages, hours, or working conditions;
( ) "Community group” means an organized collective of people with similar
interests or aims;
( ) "Organization" means a nongovernmental entity of any type, including, but
not limited to, a nonprofit corporation, an organization, a club, an association, or a group;
SECTION 2. Tennessee Code Annotated, Section 4-3-739(b)(1), is amended by adding
the following new subdivision:
(D) Enter into a community benefits agreement or any 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;
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SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to contracts executed, renewed, or otherwise modified on or after the effective date
of this act.