Tennessee House Bill HB1841

Tennessee 2023-2024 Regular Session

• Introduced: 1/11/24
• Refer: 1/24/24
• Failed: 3/5/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9 and Title 12, relative to procurement.

Impact

If passed, the bill will amend Tennessee Code Annotated to create new eligibility criteria for companies seeking to provide goods and services to the state. Specifically, it mandates that any company that has engaged in contracts with military or state entities of foreign adversaries, or those companies that provide goods or services from such entities, will not be allowed to bid. The implications of this bill could significantly alter the landscape of state contracting, potentially limiting the pool of eligible suppliers and affecting the state's ability to procure competitive bids depending on the market landscape.

Summary

House Bill 1841, known as the 'Procurement Protection Act,' aims to establish strict regulations concerning the eligibility of companies to bid on contracts with state agencies or political subdivisions in Tennessee. The bill primarily categorizes certain entities as ineligible to participate in state procurement processes if they have had any business dealings with foreign adversaries or federally banned corporations within a specified timeframe. This legislation emphasizes national security concerns by preventing companies associated with these foreign adversaries from engaging in state contracts, ensuring that any procurement processes do not compromise state interests.

Sentiment

The discussions surrounding HB 1841 reflect a divide in opinion regarding its implications. Supporters argue that the bill is a necessary measure to safeguard state interests from external threats, particularly in light of rising concerns about national security and foreign influence. On the opposite side, critics worry that the bill might unduly restrict local businesses that may have indirect connections to foreign companies or that could unfairly penalize companies without a clear understanding of their global associations. The sentiment showcases a tension between fostering economic growth and ensuring security.

Contention

Key points of contention include the broad definition of 'foreign adversary' and the wide-ranging implications of the eligibility criteria established under this act. The inclusion of various foreign entities, and the penalties associated with false certifications for bidding, raises concerns about the fairness and clarity of the procurement process. Critics feel that this could lead to an overreach that stifles local business opportunities while supporters insist that it is a vital step to protect state security.