AN ACT to amend Tennessee Code Annotated, Title 4; Title 12; Title 45 and Title 47, relative to financial transaction integrity.
The impact of HB2802 is significant, as it sets a framework for how state departments and agencies must handle financial transactions, particularly in crisis scenarios where normal electronic transaction processes may fail. The bill requires state agencies to develop contingency plans by August 2024 to ensure continuity of operations during such interruptions. This ensures that essential payments to residents and vendors can still occur despite external disruptions, thereby maintaining state functionality and public service reliability.
House Bill 2802 aims to strengthen the integrity of financial transactions within Tennessee by amending various titles in the Tennessee Code Annotated. The bill emphasizes the need for state jurisdiction over financial systems and transactions, particularly those that involve contracts and services funded by state resources. It addresses potential threats to system integrity, such as cyberattacks, natural disasters, and other risks that could disrupt essential payments and services which support the state's operations. Furthermore, it mandates that any financial systems or services procured by state entities comply with Tennessee law and jurisdiction, preventing reliance on external jurisdictions.
There may be contention surrounding the bill due to concerns about the restrictions it places on contract negotiations and agreements with external entities. Specifically, the requirement that all relevant contracts be governed by Tennessee law may limit flexibility and create barriers to engaging with technologically advanced service providers. Some stakeholders could argue that this provision might deter businesses from competing for state contracts, particularly those outside Tennessee or those that prefer governing laws that align with their operations. The balance between ensuring state control and permitting competitive practices may be a critical focal point of the discussions surrounding HB2802.