House Bill 2344, also known as the "Tennessee Businesses First Act," aims to promote local economic development by establishing bidding preferences for local businesses in government contracts. The bill amends Tennessee Code Annotated, Title 12, Chapter 4, Part 8, by introducing a new section that defines "local business" and outlines the criteria for local governments to follow when awarding contracts. Specifically, local governments with centralized purchasing must provide a thirty-day bidding period for contracts exceeding $25,000, while those without centralized purchasing must do so for contracts over $50,000. During this period, only local businesses can submit bids, and if multiple local bids are received, the contract may be tentatively awarded to the lowest responsible local bidder.

Additionally, the bill stipulates that if an out-of-county bidder submits a lower bid after the local bidding period, the local business that was tentatively awarded the contract can match that bid within ten days. The legislation also includes provisions to ensure compliance with federal laws and requires local governments to report annually on the percentage of contracts awarded to local businesses, the total dollars retained in the county, and job creation impacts. The act is set to take effect on July 1, 2026, and applies to local government contracts procured on or after that date.