Current through Acts 2023-2024, ch. 1069
Section 4-3-739 - Economic development incentive - Eligibility - Violations - Applicability and exclusions(a) As used in this section:(1) "Contracts" includes: (A) Agreements between an employer and the state; and(B) Agreements between an employer and a labor organization;(2) "Economic development incentive" means a FastTrack job training grant and economic development grant authorized under this part or capital grant authorized under chapter 15 of this title for economic development purposes provided to an employer to attract or retain the employer's physical presence in this state;(3) "Employee" means an individual who performs services for an employer for wages that are subject to withholding requirements under 26 U.S.C. § 3402;(4) "Employer" means a business entity that voluntarily pursues economic development incentives authorized under this title or enters into an agreement with this state for the purpose of receiving those incentives;(5) "Labor organization" has the same meaning as defined in 29 U.S.C. § 152;(6) "Personal contact information" means an employee's home address, home or personal cell phone number, or personal email address;(7) "Secret ballot election" means a process conducted by the national labor relations board (NLRB) in which an employee casts a secret ballot for or against labor organization representation; and(8) "Subcontractor" means an individual or entity that has contracted with the employer to perform work or provide services.(b)(1) To be eligible for an economic development incentive, an employer must not: (A) Grant 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 (NLRB);(B) Voluntarily disclose 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(C) Require a subcontractor performing work for or providing services to the employer to engage in activities prohibited in this subdivision (b)(1).(2) The prohibitions set out in subdivision (b)(1) apply to any work or service for the employer on the project for which the economic incentive is provided.(c) A person or entity may report, based upon a reasonable belief, a suspected violation of subdivision (b)(1) to the department of economic and community development; provided, that such report must be made during the term of the separate agreement entered into by and between the department of economic and community development and the employer pursuant to § 4-3-731(f). Upon receiving a report pursuant to this subsection (c), the department of economic and community development shall determine whether a violation has occurred by obtaining in writing a statement from the employer verifying whether a secret ballot election has been held. It is a breach of the separate agreement entered into between the department of economic and community development and the employer pursuant to § 4-3-731(f) for the employer to refuse to provide the written statement. If the department of economic and community development finds that an employer has violated subdivision (b)(1), then the department shall deliver written notice of the department's findings to the employer informing the employer and to the office of the attorney general and reporter to initiate proceedings to recover any funds pursuant to § 4-3-731(f).(d)(1) This section applies prospectively and excludes: (A) An agreement between this state and an employer executed prior to July 1, 2023;(B) An agreement between an employer and a labor organization executed prior to July 1, 2023;(C) An agreement between this state and an employer for a project located on the Megasite of West Tennessee, as those terms are defined in § 64-9-103, entered into prior to July 1, 2024; or(D) An economic development incentive issued for purposes of expansion of operations at an existing facility where a labor bargaining unit at such site was organized prior to July 1, 2023.(2) As used in subdivision (d)(1)(A), "agreement" includes a memorandum of understanding mutually accepted by the department of economic and community development and an employer prior to July 1, 2023, including a legally binding agreement subsequent and subject to the memorandum of understanding.Added by 2023 Tenn. Acts, ch. 415, s 1, eff. 7/1/2023.