Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1074 Compare Versions

Version 1 (Old)

Version 2 (New)

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8		-	~~~tate of mennessee~~
9		-	~~PUBLIC CHAPTER NO. 151~~
10		-	~~HOUSE BILL NO. 1096~~
11		-	~~By Mr.~~ ~~Speaker Sexton and Representatives Vaughan, Lamberth, Renea Jones, Burkhart,~~
12		-	~~Todd, Howell~~
13		-	~~Substituted for:~~ ~~Senate Bill No.~~ ~~107~~ 4
14		-	~~By Senators Johnson,~~ ~~Powers~~
15		-	~~AN ACT to amend Tennessee Code Annotated, Title 4, relative to community benefits~~
16		-	~~agreements.~~
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	2	+	HOUSE BILL 1096
	3	+	By Sexton
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	5	+	SENATE BILL 1074
	6	+	By Johnson
	7	+
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	9	+	SB1074
	10	+	003044
	11	+	- 1 -
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	13	+	AN ACT to amend Tennessee Code Annotated, Title 4,
	14	+	relative to community benefits agreements.
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17	17		WHEREAS, Tennessee, as part of its economic development policy, has the right to set
18	18		terms and conditions in connection with the awarding of economic development incentives; and
19	19		WHEREAS, Tennessee, as part of its economic development policy, seeks to play an
20	20		integral role in the formulation of economic opportunities, conditions of grants, and general
21	21		management of compliance with such awards of money; and
22	22		WHEREAS, Tennessee will oftentimes, as part of awarding economic development
23	23		incentives, oversee compliance with land use regulations, including management of a
24	24		subdivision of property; offer and provide water and wastewater services; require fire protection
25	25		systems and mechanical systems for buildings and structures; approve capital grants; and
26	26		ensure such is approved by the State Building Commission; and
27	27		WHEREAS, Tennessee will oftentimes, as part of awarding economic development
28	28		incentives, also require a private business to hire a certain number of new full-time employees,
29	29		require a specific amount of company investment, and ensure workers obtain certain skills and
30	30		knowledge; and
31	31		WHEREAS, Tennessee, as part of its economic development policy, has a vested
32	32		interest in seeking to advance and preserve its own interest in projects receiving economic
33	33		development incentives as a financer of projects contributing to the state's overall economic
34	34		health; now, therefore,
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	36	+
	37	+	- 2 - 003044
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35	39		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
36		-	SECTION 1. Tennessee Code Annotated, Section 4-3-739(a), is amended by adding ~~the~~
37		-	following new, appropriately designated subdivisions:
	40	+	SECTION 1. Tennessee Code Annotated, Section 4-3-739(a), is amended by adding
	41	+	the following new, appropriately designated subdivisions:
38	42		( ) "Community benefits agreement" means an agreement or understanding of
39		-	any type between an employer and a community group, organization, or other third
	43	+	any type between an employer and a community group, organization, or other third-
40	44		party, other than the state, that:
41		-	(A) Contractually binds the employer to fund or provide specific ~~attributes,~~
42		-	services or amenities, mitigations, or anything of value to a community or
43		-	organization;
	45	+	(A) Contractually binds the employer to fund or provide specific
	46	+	attributes, services or amenities, mitigations, or anything of value to a community
	47	+	or organization;
44	48		(B) Establishes employment criteria of any type or form, including wage
45	49		and hour criteria; or
46	50		(C) Provides for or requires the employer to utilize a trade union or other
47	51		unionized workforce where the employees collectively bargain with employers for
48	52		wages, hours, or working conditions;
49		-	( ) "Community group" means an organized collective of people with similar
	53	+	( ) "Community group” means an organized collective of people with similar
50	54		interests or aims;
51		-	( ) "Organization" means a nongovernmental entity of any type, including, but ~~not~~
52		-	limited to, a nonprofit corporation, an organization, a club, an association, or a group; ~~HB1096~~
	55	+	( ) "Organization" means a nongovernmental entity of any type, including, but
	56	+	not limited to, a nonprofit corporation, an organization, a club, an association, or a group;
53	57		SECTION 2. Tennessee Code Annotated, Section 4-3-739(b)(1), is amended by adding
54	58		the following new subdivision:
55	59		(D) Enter into a community benefits agreement or any similar legal contract if the
56	60		agreement or contract imposes obligations or conditions on the employer regarding
57	61		employment practices, benefits, or operations that are not directly related to the
58	62		performance of the employer's duties under the economic development incentive;
59		-	SECTION 3. Tennessee Code Annotated, Section 4-3-739(d), is amended by adding the
60		-	following new subdivision:
61		-	(3) Subdivision (b)(1 )(D) applies to contracts, agreements, and understandings
62		-	executed, renewed, or otherwise modified on or after July 1, 2025.
63		-	SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.
64		-	2 HOUSE BILL NO. 1096
65		-	PASSED: March 24. 2025
66		-	c-7~
67		-	CAMERON SEXTON, SPEAKER
68		-	HOUSE OF REPRESENTATIVES
69		-	n-2'~~~~-
70		-	RAND~ f MC,ALLY
71		-	SPEAKER OF THE SENATE
72		-	APPROVED this r day of ftp Y( I 2025
73		-	l~
74		-	BILL LEE, GOVERNOR
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	67	+	SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it,
	68	+	and applies to contracts executed, renewed, or otherwise modified on or after the effective date
	69	+	of this act.