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TN HB1096

TN HB1096
AN ACT to amend Tennessee Code Annotated, Title 4, relative to community benefits agreements.


summary

Introduced
02/05/2025
In Committee
02/26/2025
Crossed Over
03/04/2025
Passed
04/03/2025
Dead
Signed/Enacted/Adopted
04/04/2025

Introduced Session

114th General Assembly

Bill Summary

As enacted, prohibits an employer seeking to receive an economic development incentive from the state from entering into 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. - Amends TCA Title 4.

AI Summary

This bill amends Tennessee law to restrict employers from entering into community benefits agreements (CBAs) when seeking economic development incentives from the state. The bill defines a community benefits agreement as a contract between an employer and a community group or organization that establishes employment criteria, requires funding or services for a community, or mandates the use of unionized workforce. Specifically, the legislation prohibits employers from signing CBAs that impose employment-related obligations not directly connected to their economic development incentive performance. The bill introduces new definitions for terms like "community group" and "organization" and clarifies that these restrictions will apply to contracts executed, renewed, or modified on or after July 1, 2025. By implementing these provisions, the bill aims to limit the scope of agreements that can be made between employers receiving state economic development incentives and community organizations, potentially reducing external influences on employment practices and business operations.

Committee Categories

Business and Industry

Sponsors (7)

Last Action

Effective date(s) 07/01/2025 (on 04/04/2025)

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