Bill > SB0377

This bill introduces the "Tennessee Procurement Protection Act," which aims to prevent state agencies and political subdivisions from procuring goods or services from companies closely associated with foreign adversaries, specifically those from countries designated by the U.S. Department of Commerce as potentially threatening. The legislation defines a "foreign adversary company" as an entity domiciled, headquartered, or controlled by a government in a foreign adversary country, and prohibits such companies from bidding on state contracts. Companies must certify they are not foreign adversary companies when submitting bids, and those found submitting false certifications face significant penalties, including a $250,000 civil penalty, contract termination, and a 60-month ban from state contracts. The bill allows exceptions only if no alternative exists and the department pre-approves the procurement after determining that not obtaining the goods or services would pose a greater threat than the potential risks. The law provides nuanced provisions, such as allowing parent companies to still bid if less than 50% of their global revenue comes from specified countries, and ensuring that products with merely partial inputs from foreign adversary companies are not automatically disqualified. The act will take effect on July 1, 2025, and is designed to protect Tennessee's procurement processes from potential foreign influence and security risks.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0377&ga=114