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HOUSE BILL 2548
By Lamberth
SENATE BILL 2234
By Johnson
SB2234
011708
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AN ACT to amend Tennessee Code Annotated, Title 12,
Chapter 3 and Title 66, Chapter 2, relative to
protection of state assets.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THIS STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 12, Chapter 3, is amended by adding
the following as a new part:
12-3-1301. Short title.
(a) This part is known as and may be cited as the "Critical Infrastructure
Protection Act."
(b) The purpose of this act is to ensure that critical technology infrastructure of
this state is safe, secure, and free from influence and control by foreign adversaries.
12-3-1302. Part definitions.
As used in this part:
(1) "Covered list" means the list of communications equipment and
services that are deemed to pose an unacceptable risk to the national security of
the United States or the security and safety of United States persons published
by the federal communications commission pursuant to 47 CFR Part 1, Subpart
DD, as amended, transferred, or succeeded;
(2) "Finished good" means a technology product that has undergone all
necessary manufacturing, assembly, and production processes and is ready for
sale in its final, usable form;
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(3) "Foreign adversary" means a foreign government or non-government
entity designated by the United States department of commerce pursuant to 15
CFR Part 791, Subpart A, as amended, transferred, or succeeded;
(4) "Technology product" means:
(A) A computer information product including computer
equipment, routers, modems, tablets, hardware, software,
telecommunications equipment, smart televisions, security related
devices, data storage, and other related physical infrastructure; and
(B) Services related to the implementation, ongoing operation, or
service or repair of such technology products, including cloud-based
services; and
(5) "Technology supplier" means a person that provides finished goods
or technology products.
12-3-1303. Technology supplier certification.
The chief procurement officer shall require a technology supplier that submits a
response to a solicitation for a contract for finished goods, including contract renewals,
to submit a sworn statement, under penalty of perjury, affirming that the supplier and, if
applicable, any of its holding companies, affiliates, or subsidiaries is not:
(1) Owned or controlled by a foreign adversary or domiciled in a foreign
adversary country;
(2) A subcontractor of a foreign adversary; or
(3) Procuring a technology product included in the covered list as part of
its response.
12-3-1304. Finished good limitation – Third-party exclusion – Reasonable
alternative exclusion.
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(a) State governmental entities shall not enter into contracts for finished goods
with a technology supplier that is owned or controlled by a foreign adversary or
domiciled in a foreign adversary country. State governmental entities shall not enter into
contracts for technology products included in the covered list.
(b) The part does not apply to state contracts with third-party vendors that
contract for technology products or finished goods that certify compliance with the
Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. § 1601 et seq.).
(c) This part does not apply to contracts for finished goods or technology
products produced by a foreign adversary or included in the covered list if the chief
procurement officer determines there is no reasonable alternative to procuring the
finished goods or technology products. Such determination must be made in writing and
included in the procurement file for the finished goods or technology product, and as
prescribed by the rules, policies, and procedures of the procurement commission.
SECTION 2. Tennessee Code Annotated, Title 66, Chapter 2, is amended by adding
the following as a new part:
66-2-401. Short title.
This part is known and may be cited as the "Protection of State Land from
Foreign Adversaries Act."
66-2-402. Part definitions.
As used in the part:
(1) "Foreign adversary" means a foreign government or non-government
entity designated by the United States department of commerce pursuant to 15
CFR Part 791, Subpart A, as amended, transferred, or succeeded;
(2) "State agency" means an agency, authority, board, commission,
department, or office within the executive, legislative, or judicial branches of state
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government or an autonomous state agency, authority, board, commission,
council, department, office, or institution of higher education;
(3) "State-owned real property" means any land, building, structure,
easement, mineral right, air right, improvement, or other real estate interest
owned, leased, or otherwise controlled by this state or a state agency; and
(4) "Transfer" means a sale, lease, assignment, license, easement,
conveyance, or other disposition of an interest in real property, whether
permanent or temporary, including those by operation of law, trust, or
inheritance.
66-2-403. Prohibition of transfer to foreign adversaries.
(a) A state agency shall not transfer an interest in state-owned real property to:
(1) A foreign adversary;
(2) A legal entity that is organized under the laws of or has its principal
place of business in a foreign adversary country;
(3) A legal entity that is directly or indirectly owned, controlled, or directed
by a foreign adversary; or
(4) An agent, trustee, fiduciary, or intermediary acting on behalf of a
foreign adversary or entity described in subdivisions (a)(1)-(3).
(b) Prior to a transfer of state-owned real property, the prospective transferee
shall submit a sworn statement to the applicable state agency, under penalty of perjury,
affirming that the anticipated transfer is not in violation of subsection (a).
(c) A transaction entered into in violation of this section is null and void and
unenforceable.
66-2-404. Enforcement and penalties.
(a) The attorney general and reporter may:
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(1) Investigate a suspected violation of this part;
(2) Issue subpoenas and compel the production of documents; and
(3) Initiate civil actions to enforce compliance or seek nullification of
unlawful transactions.
(b) A person or entity that violates this part is subject to:
(1) A civil penalty of up to two-hundred fifty thousand dollars ($250,000)
or twice the value of the transaction, whichever is greater;
(2) Disqualification from participating in future state property transactions
for a minimum period of five (5) years; and
(3) Reimbursement of this state's enforcement costs, including attorneys'
fees and investigation expenses.
(c) The attorney general and reporter may seek injunctive relief or other
equitable remedies as necessary to enforce this part.
66-2-405. Exemptions.
This part does not apply to:
(1) Transfers of state-owned real property expressly authorized or
mandated by state or federal law or court order;
(2) Transfers to entities that have received a valid waiver, license, or
exemption from the United States secretary of commerce or another federal
authority vested with such jurisdiction; or
(3) Transfers involving state-owned real property necessary for national
defense, homeland security, or critical infrastructure; provided, that:
(A) Approval is obtained from the appropriate federal agency; and
(B) Written approval is provided to the governor.
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SECTION 3. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.
SECTION 4. If any provision of this act or the application of any provision of this act to
any person or circumstance is held invalid, the invalidity does not affect other provisions or
applications of the act that can be given effect without the invalid provision or application, and to
that end, the provisions of this act are declared to be severable.
SECTION 5. This act takes effect on July 1, 2026, the public welfare requiring it, and
applies to contracts entered into, renewed, or amended on or after July 1, 2026.