Bill > HB0548

This bill introduces the "Tennessee Procurement Protection Act," which aims to prevent state and local government agencies from doing business with companies that have significant ties to foreign adversaries, particularly those from countries like China. The bill defines a "foreign adversary company" as an entity domiciled, headquartered, or controlled by a government designated as a foreign adversary by the U.S. Department of Commerce. Under the new law, such companies would be prohibited from bidding on or submitting proposals for state contracts, with some limited exceptions. Companies must certify they are not foreign adversary companies when bidding, and false certification can result in substantial penalties, including a $250,000 fine, contract termination, and a 60-month ban from future state contracts. The bill allows rare exceptions only when no alternative exists and the department pre-approves the procurement after determining that not obtaining the good or service would pose a greater threat to the state than the potential risks associated with the foreign adversary company. The law will take effect on July 1, 2025, and is designed to protect Tennessee's procurement processes from potential foreign influence and control.

Government Affairs, Labor and Employment

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0548&ga=114