NASHVILLE (AP) - A Senate committee on Tuesday advanced Republican Gov. Bill Haslam's proposal to block public access to business records used to make grant decisions.

The Senate Commerce Committee voted 8-0 to approve the measure after making a change to allow the State Funding Board to examine the information that would otherwise be shielded from public view.

"That's an important piece, because that creates a nice balance between the legislative and executive branches of government," said Sen. Bo Watson, R-Hixson, who is carrying the legislation for the governor.

The Funding Board includes the comptroller, treasurer and secretary of state, all of whom are elected by state lawmakers. The panel must approve all large grants proposed by the Department of Economic and Community Development.

"The intent of this bill is to allow for the department and the state to have better information when getting into investment opportunities," Watson said. The measure now goes to a full floor vote.

Haslam has called for the public records changes as part of his plan to offer more cash incentives for companies to invest in Tennessee.

The bill closes off information regarding "business processes, organizational structure and ownership, financial statements, budgets, cash flow reports or similar materials."

The governor has argued that his proposal encourages more transparency than in the tax incentives that the state has relied on heavily in the past.

Frank Gibson, the public policy director of the Tennessee Press Association, called the bill unnecessary because proprietary information is already closed to the public.

Gibson said the sponsors of the bill insist that the contracts and supporting materials for any grants made to companies will remain public records once they are approved.

Watson said the bill is necessary because the state will be asking for "new information" from co mpanies considering an investment in Tennessee.

"It's not been available to the state before because companies are reluctant to divulge this type of information for fear that it may be made public and thus be available to their competitors and others," he said.