This bill enacts the "Tennessee Procurement Protection Act," the purpose of which is to ensure that suppliers to the state and to political subdivisions of this state are safe, reliable, and free from undue influence and control from foreign adversaries. As used in this bill, a "foreign adversary" means a country designated by the United States department of commerce under 15 CFR 791.4 on January 1, 2025, and as amended thereafter. As of the writing of this summary, the following countries are designated in 15 CFR 791.4: (i) The People's Republic of China, including the Hong Kong Special Administrative Region (China); (ii) the Republic of Cuba (Cuba); (iii) the Islamic Republic of Iran (Iran); (iv) the Democratic People's Republic of Korea (North Korea); and (v) the Russian Federation (Russia). PROHIBITED BIDDING ON PUBLIC CONTRACTS This bill generally prohibits a foreign adversary company from bidding on or submitting a proposal for a contract with a state agency or political subdivision of this state for goods or services. A company that offers to provide final products or services to a state agency or a political subdivision of this state that are manufactured or produced by a foreign adversary company must, for the purposes of this bill, be considered a foreign adversary company. However, such restriction does not apply to products or services that have inputs from a foreign adversary company but that are not final products of a foreign adversary company. As used in this bill, a "foreign adversary company" means a company that (i) is domiciled, incorporated, issued, or listed in a foreign adversary; (ii) is headquartered in a foreign adversary; (iii) has its principal place of business in a foreign adversary; (iv) is controlled by the government or an instrumentality thereof of a foreign adversary; or (v) is majority-owned by an entity or is board-controlled by an entity that is under the jurisdictional control of the government of a foreign adversary. If a parent company does not meet such criteria and does not recognize more than 50% of the total annual global revenue of the parent company and subsidiaries from China and Hong Kong combined, then the parent company is not a foreign adversary company solely because one or more subsidiaries or affiliates meet the definition of a foreign adversary company. CERTIFICATION REQUIRED – PENALTIES FOR VIOLATIONS This bill requires a state agency or political subdivision of this state to require a company that submits a bid or proposal for a contract for goods or services to certify that the company is not a foreign adversary company. If the commissioner of finance and administration determines that a company has submitted a false certification, then (i) the company is liable for a civil penalty in an amount that is equal to the greater of $250,000 or twice the amount of the contract for which a bid or proposal was submitted; (ii) the state agency or the department of finance and administration must terminate the contract with the company; and (iii) the company is prohibited from bidding on a state contract for 60 months. EXCEPTION This bill authorizes a state agency to enter into a contract for goods or services produced by a foreign adversary company if (i) there is no other reasonable option for procuring the good or service; and (ii) the contract is pre-approved by the department after a determination that not procuring the good or service would pose a greater threat to the state than the threat associated with the good or service itself.