Economic and Community Development - As enacted, prohibits an employer seeking to receive an economic development incentive from the state from entering into a community benefits agreement or similar legal contract if the agreement or contract imposes obligations or conditions on the employer regarding employment practices, benefits, or operations that are not directly related to the performance of the employer’s duties under the economic development incentive. - Amends TCA Title 4.

SB 1074 prohibits employers receiving Tennessee's economic development incentives from entering into community benefits agreements that impose workplace rules or operational requirements unrelated to the incentive program itself. It directly affects businesses seeking state-funded economic development incentives, such as tax breaks or grants. The bill defines "community benefits agreements" as contracts between employers and community groups that could mandate things like specific wages, union hiring, or community funding - unless those requirements directly relate to the incentive's purpose. This change ensures state oversight of incentive terms remains focused on project performance, not external community demands on employment practices. The law applies to all new or modified incentive agreements after its effective date.