20-HB2156/SB2111 – Boyd/Lundberg

Bill Description

ON JUNE 2, 2020, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2156, AS AMENDED.

AMENDMENT #1 rewrites this bill and requires the department of economic and community development to, at least once each year, brief the fiscal review committee at a time to be determined by the fiscal review committee, on any new clawback rights being executed by the department during the current year, as well as any clawback rights from previous years that are still being collected by the department during the current year. This amendment defines "clawback" as a provision in an agreement or a separate agreement that reserves the right of the department to recover the amount of money, grants, funds, or other incentives disbursed by the department, in whole or in part, if the person or entity benefitting from such money, grants, funds, or other incentives fails to fulfill the commitments made by such person or entity to the department. Present law requires the department, when awarding FastTrack grants and loans or capital grant contract, to execute a separate agreement reserving the right of the department to recover the amount of grants, funds, or other incentives disbursed if the person or entity receiving a benefit under the grant, loan, or contract fails to fulfill any commitments made to the department.

ON JUNE 4, 2020, THE SENATE SUBSTITUTED HOUSE BILL 2156 FOR SENATE BILL 2111, ADOPTED AMENDMENT #1, AND PASSED HOUSE BILL 2156, AS AMENDED.
AMENDMENT #1 rewrites this bill to require the department of economic and community development to, at least once each year, report to the fiscal review committee the total number of persons or entities benefitting from money, grants, funds, or other incentives that failed to fulfill the commitments made by such persons or entities to the department pursuant to agreements made in conjunction with FastTrack infrastructure development, training, and economic development grants since the previous report, and the total amount of money, grants, funds, or other incentives recovered by the department from those persons or entities since the previous report.

TLRC Position

We agree that taxpayer funds handed out to Tennessee businesses by the ECD need to be monitored and paid back if promises are not kept.

TLRC Observed Process

Passed both chamber unanimously. No drama.

Vote Result: Passed

Score: +5

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