AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 48 and Title 67, relative to corporate entities.
HB1884 amends Tennessee law to require state agencies to deny, revoke, or refuse to renew a certification, registration, license, or permit held by a corporate entity if the agency receives satisfactory proof that the entity, through an officer, director, or employee, provides material support or resources to certain terrorist-related groups. The bill applies to domestic and foreign corporations, LLCs, LLPs, limited partnerships, and nonprofit entities. It also covers entities that provide meeting space or other forums, including electronic and print platforms, when those spaces are used to solicit support or recruit members for the prohibited groups.
The bill defines the covered groups broadly to include foreign terrorist organizations designated by the U.S. Department of State, specially designated nationals identified by the U.S. Department of the Treasury, groups found by a U.S. court to have engaged in terrorism, and groups that receive support from a designated entity. It also defines “material support or resources” expansively to include property, services, lodging, training, advice, financial services, transportation, and personnel, while expressly excluding medicine and religious materials. The act takes effect immediately upon becoming law.
The bill adds a new section to Tennessee Code Annotated § 4-1-430 and directly affects state licensing and permitting decisions for corporate entities. State agencies would gain authority to deny, revoke, or refuse to renew a wide range of authorizations based on proof of support for designated terrorist organizations or related groups, creating a new compliance and enforcement standard for businesses and nonprofits operating in Tennessee. It also touches Titles 8, 48, and 67 by amending the broader statutory framework governing corporate entities and state regulation.
The available voting history suggests the bill had meaningful support but was not unanimous. It advanced out of the House Departments & Agencies Subcommittee on a 7-0 vote and then passed the House State & Local Government Committee 17-4, indicating broad committee approval with some opposition. No committee transcript is available, so the record shows support for the bill’s anti-terrorism purpose but also enough concern to produce several dissenting votes.
The main point of contention is the breadth of the bill’s enforcement mechanism and definitions. Opponents may be concerned that state agencies could penalize corporate entities based on the conduct of employees or officers, or on associations with groups that are indirectly connected to designated entities. The inclusion of meeting spaces, electronic platforms, and print forums could also raise free speech, association, and due process concerns, especially for nonprofits, publishers, and service providers. Supporters likely view the bill as a security measure aimed at preventing state-issued licenses and permits from benefiting organizations tied to terrorism.