Amends TCA Section 12-4-103.

This bill makes changes to the prohibition against members of the general assembly being able to bid on, sell, or offer for sale a service to a state entity or have a financial interest in the bid, sale, or offer for sale of a service to a state entity as described below.<br /> <br /> Present law makes it a Class E felony for a member of the general assembly to bid on, sell, or offer for sale a service to a state entity or to have a financial interest in the bidding, selling, or offering for sale of a service to a state entity during the tenure of the member's office and for six months thereafter unless one of the following exceptions applies:<br /> <br /> (1) An exception exists if the member was elected prior to July 1, 2021; the member provided, or offered to provide, the service to a state entity prior to July 1, 2021, and the service is being provided or offered to the same state entity; the member has held office as a member continuously since July 1, 2021; and the member disclosed the nature of the service and the name of the state entity on the member's statement of interest to the Tennessee ethics commission no later than September 1, 2021, and annually thereafter, for all years in which the member has continuously served as a member;<br /> <br /> (2) An exception exists if the service is provided through an employment contract, an indigent defense contract, or a medical services contract unless prohibited by the Constitution of Tennessee; and<br /> <br /> (3) An exception exists if the financial interest in the bidding, selling, or offering for sale of a service to a state entity is held in a blind trust prior to administration of the member's oath of office, during the tenure of the member's service as a member, and for at least six months thereafter; and is disclosed in the member's annual report to the Tennessee ethics commission in accordance with present law disclosure requirements.<br /> <br /> Present law provides that the exceptions in (1)-(3) do not apply to services provided to the legislative branch of state government, and that the prohibition on members does not preclude either house of the general assembly from adopting a rule more restrictive than the prohibition. For purposes of the prohibition, a "state entity" does not include a local government.<br /> <br /> Present law provides the following penalties and remedies for a violation:<br /> <br /> (1) Criminal penalties for a Class E felony, which may include a term of imprisonment of not less than one year nor more than six years, a fine not to exceed $3,000, or both;<br /> <br /> (2) Liability to the state for all sums paid out by the state, together with interest at the rate of 8 percent per annum, growing out of the transaction; and<br /> <br /> (3) Permanent disqualification from holding any office under the laws or constitution of this state; provided, if the member holds an office under the constitution of this state at the time of conviction, then the disqualification applies at the end of the member's term of office, unless otherwise expelled from office prior to that time.<br /> <br /> This bill adds an additional exception for a member with a financial interest in the bidding, selling, or offering for sale of a service to a state entity if the following requirements are met:<br /> <br /> (1) The financial interest is held as an investment with a federally chartered bank or state chartered bank; a share in a mutual fund; or a security in a business enterprise listed on the New York Stock Exchange, the NYSE American, or the Nasdaq and the holding represents less than 5 percent of the outstanding securities of the business enterprise; and<br /> <br /> (2) The financial interest is disclosed, as applicable, in the member's annual report to the Tennessee ethics commission in accordance with present law disclosure requirements.<br />