TN SB0377

Foreign adversary companies are prohibited from bidding on or submitting proposals for contracts with Tennessee state agencies or political subdivisions for goods or services, effective July 1, 2025

"Foreign adversary" is defined as countries designated by the U.S. Department of Commerce under 15 CFR 791.4, and includes companies domiciled, headquartered, or controlled by governments of those countries

Companies submitting bids must certify they are not foreign adversary companies; false certification results in civil penalties of $250,000 or twice the contract amount (whichever is greater), contract termination, and a 60-month bidding ban

Parent companies are exempt from the restrictions if they do not derive more than 50% of total annual global revenue from China and Hong Kong combined, even if subsidiaries qualify as foreign adversary companies

State agencies may obtain an exception to contract with foreign adversary companies if no reasonable alternative exists and the Department of Finance and Administration determines that not procuring the goods/services poses a greater threat than the procurement itself