Tennessee House Bill HB1519

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23
• Refer: 3/28/23
• Refer: 4/5/23
• Chaptered: 5/4/23
• Passed: 5/4/23

Caption

AN ACT to amend Tennessee Code Annotated, Section 12-4-103, relative to services provided to the state.

Impact

The amendment to Section 12-4-103 reflects an effort to balance the need for transparency in state contracts with the recognition that certain financial holdings should not preclude participation in bidding processes. By allowing investments in widely-held securities and mutual funds to be exempt from the stringent bidding restrictions earlier imposed, the bill can encourage broader participation in state contracts, leading to enhanced competition and potentially better service provision for state entities.

Summary

House Bill 1519 aims to amend Tennessee Code Annotated Section 12-4-103, which pertains to the services provided to the state, specifically focusing on financial interests related to bidding or offering services to state entities. The bill introduces a new exception to existing regulations, allowing financial interests held as investments in federally or state-chartered banks, mutual funds, or certain publicly traded securities, provided that these holdings do not exceed 5% of the outstanding securities of the enterprise. This change is intended to clarify and potentially ease restrictions on individuals or entities that wish to engage in transactions with state agencies.

Sentiment

General sentiment surrounding HB 1519 appears to be positive as it promotes financial engagement with state services while maintaining a degree of oversight through the requirement of disclosure for significant holdings. The support for the bill likely stems from bipartisan recognition of the need for state entities to access a diverse supplier base. However, there may be concerns regarding the adequacy of transparency measures and whether these exemptions could lead to conflicts of interest in state contracts.

Contention

Though support for HB 1519 is noted, there are points of contention regarding the potential risks involved in broadening exemptions to the regulation on financial interests in state contracts. Critics may argue that relaxing these standards could undermine the integrity of the bidding process, as it could enable individuals with significant vested interests in companies to influence decisions unduly. The balance between facilitating investment and maintaining ethical governance will be a key area of debate as the bill moves forward.