Senate Bill 377 aims to amend the Tennessee Procurement Protection Act by establishing new regulations regarding the procurement of goods and services from foreign adversary companies. The bill introduces definitions for key terms such as "foreign adversary," "foreign adversary company," and outlines the criteria under which a company may be classified as a foreign adversary. It prohibits state agencies and political subdivisions from procuring final products or services from foreign adversary companies, while allowing procurement from companies with operations in foreign adversaries, provided they do not meet the definition of a foreign adversary company.

Additionally, the bill mandates that companies bidding for state contracts must certify that they are not foreign adversary companies. If a company submits a false certification, it faces significant penalties, including a civil penalty of at least $250,000, termination of the contract, and a prohibition from bidding on state contracts for 60 months. However, exceptions are made for contracts with foreign adversary companies if no reasonable alternatives exist and the contract is pre-approved by the department. The act is set to take effect on July 1, 2025.