Senate Bill 377, also known as the "Tennessee Procurement Protection Act," aims to enhance the safety and reliability of suppliers to the state and its political subdivisions by prohibiting procurement from companies classified as "foreign adversary companies." The bill defines a foreign adversary company as one that is domiciled, incorporated, or controlled by a foreign adversary, which is designated by the U.S. Department of Commerce. It establishes a certification requirement for companies bidding on state contracts, ensuring 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 and a prohibition from bidding on state contracts for 60 months.

The bill also allows for exceptions where a state agency may contract with a foreign adversary company if no reasonable alternatives exist and the contract is pre-approved by the Department of Finance and Administration. Additionally, the act includes a severability clause, ensuring that if any provision is deemed invalid, the remaining provisions will still be enforceable. The act is set to take effect on July 1, 2025.