HB1265/SB0513 – Tightens some granting provisions of the Economic & Community Development Dept. – Holt/Roberts
AMENDMENT #1 rewrites this bill and:
(1) Requires the department of economic and community development to execute a separate agreement in conjunction with any capital grant contract awarded pursuant to present law provisions governing the state building commission, for economic development purposes. The separate agreement must reserve the right of the department to recover the amount of grants, funds, or other incentives disbursed by the department of finance and administration pursuant to the grant contract, in whole or in part, if the person or entity benefiting from the grants, funds, or other incentives fails to fulfill the commitments made by the person or entity to the department of economic and community development;
(2) Deletes from the present law franchise tax credits the job tax credit for a qualified business enterprise that is located in an enhancement county upon the creation of less than 25 qualified jobs; and
(3) Deletes the present law provision whereby the commissioner of revenue and the commissioner of economic and community development may lower the number of jobs that must be created in order to qualify under the Franchise Tax Law for the additional annual job tax credit or the credit for qualified headquarters facilities relocation, or to qualify for the sales and use tax credit for qualified headquarters facilities.
Approve: This bill makes it more difficult for the ECD and the leadership of TN to do "business" with crony capitalists. It provides for some recovery of grant money when grantees fail to fulfill their commitments.
TLRC Observed Process
The bill passed unopposed in both chambers.