Amends TCA Title 4 and Title 50.
ON MARCH 16, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1342, AS AMENDED. AMENDMENT #1 rewrites this bill to enact the "Employee Free Choice and Privacy Act," which places certain restrictions on employers seeking to receive economic development incentives as described below. PROHIBITED CONDUCT In order for an employer to be eligible for an economic development incentive, this amendment prohibits the employer from doing the following: (1) Granting recognition rights for employees solely and exclusively 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; (2) Voluntarily disclosing 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 state or federal law; or (3) Requiring a subcontractor performing work for, or providing services to, the employer to engage in activities prohibited in (1) or (2). This amendment provides that the prohibitions in (1)-(3) above apply to any work or service for the employer on the project for which the economic development incentive is provided. This amendment defines "economic development incentive" as a FastTrack jobs training grant and economic development grant or a capital grant for economic development purposes provided to an employer to attract or retain the employer's physical presence in this state. REMEDIES This amendment authorizes a person or entity to report, based on a reasonable belief, a suspected violation of the prohibitions to the department of labor and workforce development. Upon receiving a report, the department must investigate whether a violation has occurred. If upon conclusion of the investigation, the department finds that an employer has violated one of the prohibitions, then the department must provide written notice to the department of economic and community development. Upon notice from the department of labor and workforce development of a violation, the department of economic and community development must deliver written notice to the employer informing the employer of the results of the investigation and to the office of the attorney general to initiate proceedings to recover any funds. SEPARATE AGREEMENTS This amendment adds to present law, in relation to the execution of a separate agreement when a grant or loan contract reserves right of recovery if the person or entity fails to fulfill commitments, that the department of economic and community development, prior to contracting to award an economic development incentive, must execute a separate agreement with the recipient of the incentive that reserves the right of the department to recover the amount of money, grants, or other incentives disbursed by the department, if the recipient benefiting from such money, grants, funds, or other incentives fails to comply with (1)-(3) above. APPLICABILITY This bill applies to contracts executed, renewed, or otherwise modified on or after the effective date of this bill. ON APRIL 3, 2023, THE SENATE SUBSTITUTED HOUSE BILL 1342 FOR SENATE BILL 650, ADOPTED AMENDMENTS #1 AND #2, AND PASSED HOUSE BILL 1342, AS AMENDED. AMENDMENT #1 incorporates the provisions of House Amendment #1 with the following changes and additions: (1) Removes the short title; (2) Defines, "contracts" to include agreements between and employer and the state and agreements between an employer and a labor organization; (3) Transfers responsibility for investigating suspected violations from the department of labor and workforce development to the department of economic and community development. The full text of this amendment specifies the process by which the department will make determinations concerning suspected violations; (4) Provides that the provisions of this bill concerning recognition without an election (when applicable) are prospective and specifies four exceptions; and (5) Adds that separate agreements (described in the Summary for House Amendment #1) must have a term of not less than 10 years. AMENDMENT #2 requires that separate agreements (described in the Summary for House Amendment #1) must have a term of not less than: (1) The term the department would require for such an agreement executed pursuant to present law concerning capital grant contracts for an economic development incentive of less than $50,000,000; or (2) Ten years, for an economic development incentive of $50,000,000 or more. ON APRIL 10, 2023, THE HOUSE NONCONCURRED IN SENATE AMENDMENTS # 1 AND 2. ON APRIL 13, 2023, THE SENATE REFUSED TO RECEDE FROM ITS ADOPTION OF AMENDMENTS #1 AND #2. ON APRIL 19, 2023, THE HOUSE REFUSED TO RECEDE IN ITS NONCONCURRENCE AND APPOINTED A CONFERENCE COMMITTEE. ON APRIL 21, 2023, THE HOUSE ADOPTED THE CONFERENCE COMMITTEE REPORT AND MADE IT THE ACTION OF THE HOUSE. ON APRIL 21, 2023, THE SENATE ADOPTED THE CONFERENCE COMMITTEE REPORT AND MADE IT THE ACTION OF THE SENATE.
ON MARCH 16, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1342, AS AMENDED. AMENDMENT #1 rewrites this bill to enact the "Employee Free Choice and Privacy Act," which places certain restrictions on employers seeking to receive economic development incentives as described below. PROHIBITED CONDUCT In order for an employer to be eligible for an economic development incentive, this amendment prohibits the employer from doing the following: (1) Granting recognition rights for employees solely and exclusively 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; (2) Voluntarily disclosing 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 state or federal law; or (3) Requiring a subcontractor performing work for, or providing services to, the employer to engage in activities prohibited in (1) or (2). This amendment provides that the prohibitions in (1)-(3) above apply to any work or service for the employer on the project for which the economic development incentive is provided. This amendment defines "economic development incentive" as a FastTrack jobs training grant and economic development grant or a capital grant for economic development purposes provided to an employer to attract or retain the employer's physical presence in this state. REMEDIES This amendment authorizes a person or entity to report, based on a reasonable belief, a suspected violation of the prohibitions to the department of labor and workforce development. Upon receiving a report, the department must investigate whether a violation has occurred. If upon conclusion of the investigation, the department finds that an employer has violated one of the prohibitions, then the department must provide written notice to the department of economic and community development. Upon notice from the department of labor and workforce development of a violation, the department of economic and community development must deliver written notice to the employer informing the employer of the results of the investigation and to the office of the attorney general to initiate proceedings to recover any funds. SEPARATE AGREEMENTS This amendment adds to present law, in relation to the execution of a separate agreement when a grant or loan contract reserves right of recovery if the person or entity fails to fulfill commitments, that the department of economic and community development, prior to contracting to award an economic development incentive, must execute a separate agreement with the recipient of the incentive that reserves the right of the department to recover the amount of money, grants, or other incentives disbursed by the department, if the recipient benefiting from such money, grants, funds, or other incentives fails to comply with (1)-(3) above. APPLICABILITY This bill applies to contracts executed, renewed, or otherwise modified on or after the effective date of this bill. ON APRIL 3, 2023, THE SENATE SUBSTITUTED HOUSE BILL 1342 FOR SENATE BILL 650, ADOPTED AMENDMENTS #1 AND #2, AND PASSED HOUSE BILL 1342, AS AMENDED. AMENDMENT #1 incorporates the provisions of House Amendment #1 with the following changes and additions: (1) Removes the short title; (2) Defines, "contracts" to include agreements between and employer and the state and agreements between an employer and a labor organization; (3) Transfers responsibility for investigating suspected violations from the department of labor and workforce development to the department of economic and community development. The full text of this amendment specifies the process by which the department will make determinations concerning suspected violations; (4) Provides that the provisions of this bill concerning recognition without an election (when applicable) are prospective and specifies four exceptions; and (5) Adds that separate agreements (described in the Summary for House Amendment #1) must have a term of not less than 10 years. AMENDMENT #2 requires that separate agreements (described in the Summary for House Amendment #1) must have a term of not less than: (1) The term the department would require for such an agreement executed pursuant to present law concerning capital grant contracts for an economic development incentive of less than $50,000,000; or (2) Ten years, for an economic development incentive of $50,000,000 or more. ON APRIL 10, 2023, THE HOUSE NONCONCURRED IN SENATE AMENDMENTS # 1 AND 2. ON APRIL 13, 2023, THE SENATE REFUSED TO RECEDE FROM ITS ADOPTION OF AMENDMENTS #1 AND #2. ON APRIL 19, 2023, THE HOUSE REFUSED TO RECEDE IN ITS NONCONCURRENCE AND APPOINTED A CONFERENCE COMMITTEE. ON APRIL 21, 2023, THE HOUSE ADOPTED THE CONFERENCE COMMITTEE REPORT AND MADE IT THE ACTION OF THE HOUSE. ON APRIL 21, 2023, THE SENATE ADOPTED THE CONFERENCE COMMITTEE REPORT AND MADE IT THE ACTION OF THE SENATE.
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