"Clawback Bill" Passes in Senate and House Committee
WBBJ 7 Eyewitness News
NASHVILLE, Tenn. - Companies that do not come through on promises of new jobs for Tennesseans will have to pay back incentives to the state under a bill that passed in the senate, Wednesday.
According to Senator Lowe Finney, a sponsor of the bill, if a company does not come through, taxpayers should get their money back. The democrat from Jackson along with Rep. Craig Fitzhugh, a democrat from Ripley, sponsored the bill.
The legislation comes after the closure of Hemlock Superconductor, which promised between 500 and 900 jobs. After accepting $245 million in state incentives, the company announced the permanent layoff of 400 employees.
The legislation adds a "clawback" provision to all future contracts and grants with the companies accepting financial incentives on the promise of new jobs in Tennessee.