Amends TCA Title 12, Chapter 3, Part 5.

This bill makes changes to the law concerning solicitations, awards, or proposed awards of state contracts as described below.<br /> <br /> Under present law, a respondent who has submitted a solicitation authorization under applicable law, and who claims to be aggrieved in connection with the solicitation, award, or proposed award of a contract may protest to the chief procurement officer. The protest must be submitted in writing within seven calendar days after the earlier of the notice of the award or intent to award the contract is issued. Issues raised by the protesting party after the seven-day period are not considered as part of the protest. Upon receipt of a protest of a solicitation, award, or proposed award of a contract, and a protest bond as required by law, a stay of the solicitation, award, or proposed award must be in effect until the protest is resolved. <br /> <br /> This bill adds that a protest based upon the cancellation of a solicitation, in whole or in part, is not actionable and must not be considered. It further adds that a protest can be filed electronically or by hard-copy with the chief procurement officer, subject to the policies and procedures adopted by the procurement commission. A protest that is filed electronically must be considered timely upon successful commission. <br /> <br /> Under present law, a protest is not actionable unless the protesting party submits a protest bond contemporaneously with a protest. A protest bond must be payable to the state in the amount of: <br /> <br /> (1) 5 percent of the lowest bid or cost proposal evaluated;<br /> <br /> (2) 5 percent of the maximum liability or estimated maximum liability provided in the solicitation;<br /> <br /> (3) 5 percent of the estimated maximum revenue, if the solicitation, award, or proposed award is for a contract in which the state receives revenue; or <br /> <br /> (4) For no-cost contracts, an amount to be determined by the chief procurement officer. <br /> <br /> However, the following businesses, if meeting certain requirements, can submit a written petition for exemption from the protest bond requirements for solicitations, awards, or proposed awards of contracts in which the estimated maximum liability, estimated maximum revenue, or lowest evaluated cost proposal is less than one million dollars:<br /> <br /> (1) A minority-owned business;<br /> <br /> (2) A woman-owned business;<br /> <br /> (3) A Tennessee service-disabled veteran-owned business;<br /> <br /> (4) A business owned by persons with disabilities; or<br /> <br /> (5) A small business.<br /> <br /> This bill makes it allowable for those petitioning for an exemption from the protest bond requirements to submit the petition electronically or by hard-copy, subject to the policies and procedures adopted by the procurement commission. <br /> <br /> This bill prohibits a state governmental entity from entering into a contract subject to this chapter of law that contains a term or condition that: <br /> <br /> (1) Requires this state or a state governmental entity to defend, indemnify, or hold harmless another person; assume liability for an act or omission against a person, except as specifically provided in the contract or otherwise provided by law; be bound by terms and conditions that are unknown to the state at the time of signing such contract or that may be unilaterally changed by another party; pay liquidated damages; or pay taxes, except as may be required by law; <br /> <br /> (2) In litigation about a term of the contract, permits a person, other than the attorney general and reporter, to serve as legal counsel for this state or a state governmental entity, except as otherwise provided by law; <br /> <br /> (3) Establishes the venue for an action or dispute with this state or a state governmental entity in a jurisdiction other than the Tennessee claims commission, the chancery courts of Davidson County, and federal courts of the state; <br /> <br /> (4) Provides that the contract must be construed in accordance with the laws of a state other than this state;<br /> <br /> (5) Requires binding arbitration; or<br /> <br /> (6) Contains an automatic renewal obligating state funds subsequent to the initial term of the contract. <br /> <br /> If a contract entered into by a state governmental entity that is subject to the authority of the chief procurement officer contains such a prohibited term or condition as described above, then the term or condition is void and the contract is enforceable as if the contract did not contain such term or condition. The chief procurement officer is authorized to promulgate rules to effectuate the provisions above. <br /> <br /> This bill applies to contracts entered into on or after the effective date of this bill.<br /> <br /> ON MARCH 6, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 252, AS AMENDED.<br /> <br /> AMENDMENT #1 revises the provision in the bill that prohibits a state government from entering into a contract that contains a term or condition that establishes the venue for an action or dispute with this state or a state governmental entity in a jurisdiction other than the Tennessee claims commission, the chancery courts of Davidson County, and federal courts of the state. This amendment provides, instead, that a term or condition is prohibited if it establishes venue in a jurisdiction other than the Tennessee claims commission, the chancery courts of Williamson County, and federal courts of the state.<br />