§ 12-3-515 — Contract limitations - When voidable - Authority

(a) A state governmental entity shall not enter into a contract subject to the operation of this chapter that contains a term or condition that: (1) Requires this state or a state governmental entity to: (A) Defend, indemnify, or hold harmless another person; (B) Assume liability for an act or omission against a person, except as specifically provided in the contract or as otherwise provided by law; (C) Be bound by terms and conditions that are unknown to this state at the time of signing such contract or that may be unilaterally changed by another party; (D) Pay liquidated damages; or (E) Pay taxes, except as may be required by law; (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 provided in § 8-6-106 ; (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 Williamson County, and federal courts in this state; (4) Provides that the contract must be construed in accordance with the laws of a state other than this state; (5) Requires binding arbitration; or (6) Contains an automatic renewal obligating state funds subsequent to the initial term of the contract. (b) If a contract entered into by a state governmental entity that is subject to the authority of the chief procurement officer under this chapter or title 4, chapter 56, contains a term or condition prohibited under this section, then such term or condition is void, and the contract is enforceable as if the contract did not contain such term or condition. (c) The chief procurement officer may promulgate rules to effectuate the purposes of this section.

Legislative History

Added by 2023 Tenn. Acts, ch. 113, s 5, eff. 4/4/2023.