Tennesse Bill Prohibiting Discrimination Against a Business Due to Internal Policies (SB 127)

SB 127 would prohibit a government entity from taking discriminatory action against a business entity on the basis of the internal policies of the business entity, including, but not limited to, personnel and employee benefit policies that are in compliance with state law.

The bill defines discriminatory action to mean any action taken by a government entity or local government entity to:

• Alter in any way the tax treatment of, or cause any tax, penalty, or payment to be assessed against a business entity;
• Deny, delay, or revoke a business entity’s exemption from taxation;
• Withhold, reduce, exclude, terminate, deny, or otherwise make unavailable to a business entity any grant, contract, subcontract, cooperative agreement, bond issue, license, certification, or other similar opportunity, position, or status; or
• Withhold, reduce, exclude, terminate, deny, or otherwise make unavailable to a business entity access or an entitlement to property, facilities, speech forums, including traditional, limited, and nonpublic forums, or charitable fundraising campaigns.

If passed, the law would potentially allow businesses to discriminate based on sexual preference or gender identity.

If passed, the law would take effect immediately.

Amendment

An amendment add to the bill would further prohibit a local government entity from taking any discriminatory action against a business entity on the basis of the internal policies of the business entity, including, but not limited to, personnel and employee benefit policies that are in compliance with state law.

If passed, the bill would essentially prohibit any city, town, municipality, or county from enforcing any of their own nondiscrimination laws that may provide greater protections for members of the LGBTQ community.

Related Legislation

Companion bill to HB 54.

STATUS

Passed the senate on March 9, 2017, by a 25-5 vote.

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