House Bill 1938 and Senate Bill 1994 propose an amendment to Tennessee Code Annotated, Title 41, Chapter 24, specifically addressing the use of private prison contractors. The bill introduces a new section that defines "local government" as a county, an incorporated city or town, or a metropolitan government. It stipulates that, after the bill's effective date, the state, including its departments and agencies, as well as local governments, are prohibited from entering into new contracts or renewing existing contracts for the provision of correctional services or facilities for inmates under their custody.

The bill aims to restrict the involvement of private entities in the management and operation of correctional facilities, reflecting a shift towards public management of correctional services. This legislative change is intended to enhance accountability and oversight in the treatment of inmates and the operation of correctional facilities within the state. The act will take effect upon becoming law, emphasizing the urgency of the public welfare in this matter.