# Tenn. Code Ann. § 4-56-109: Vendor indictment of Antitrust Act - Notice - Fine - Contract termination > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-109 ## Section - **Citation:** Tenn. Code Ann. § 4-56-109 - **Heading:** Vendor indictment of Antitrust Act - Notice - Fine - Contract termination - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 4 / Chapter 56 / Section 4-56-109 ## Text (a) As used in this section, "vendor" means a legal entity that: (1) Is currently under contract with a department or agency of this state; (2) Bids on a contract with a department or agency of this state; or (3) Attempts to amend a current contract with a department or agency of this state. (b) If a vendor is indicted for or convicted of, or pleads guilty or nolo contendere to, any violation under the Sherman Antitrust Act ( 15 U.S.C. §§ 1 - 7 ); mail fraud under 18 U.S.C. § 1341 ; any federal or state criminal statute in connection with any contract let or funded, in whole or in part, by this state or any other state or territory of the United States; or any federal or state crime as the result of any investigation into such violations or crimes, the vendor shall provide notice of such indictment, conviction, or plea to the chief procurement officer by submitting a copy of the indictment, final judgment of conviction, or plea agreement to the chief procurement officer not later than thirty (30) days after being indicted, convicted, or pleading guilty or nolo contendere. (c) Upon receiving notice under subsection (b), the chief procurement officer shall forward a copy of the indictment, final judgment of conviction, or plea agreement to the executive director of fiscal review and the comptroller of the treasury. (d) If a vendor knowingly fails to provide notice under subsection (b), the chief procurement officer may fine the vendor ten thousand dollars ($10,000); provided, that, if the vendor is under contract and the total price of the contract is greater than two hundred thousand dollars ($200,000), the chief procurement officer may fine the vendor in an amount not to exceed five percent (5%) of the total price of the contract. (e) A department or agency of this state may terminate any contract with a vendor who is found to be in violation of this section. Amended by 2016 Tenn. Acts, ch. 730, s 1, eff. 7/1/2016. (a) As used in this section, "vendor" means a legal entity that: (1) Is currently under contract with a department or agency of this state; (2) Bids on a contract with a department or agency of this state; or (3) Attempts to amend a current contract with a department or agency of this state. (1) Is currently under contract with a department or agency of this state; (2) Bids on a contract with a department or agency of this state; or (3) Attempts to amend a current contract with a department or agency of this state. (b) If a vendor is indicted for or convicted of, or pleads guilty or nolo contendere to, any violation under the Sherman Antitrust Act ( 15 U.S.C. §§ 1 - 7 ); mail fraud under 18 U.S.C. § 1341 ; any federal or state criminal statute in connection with any contract let or funded, in whole or in part, by this state or any other state or territory of the United States; or any federal or state crime as the result of any investigation into such violations or crimes, the vendor shall provide notice of such indictment, conviction, or plea to the chief procurement officer by submitting a copy of the indictment, final judgment of conviction, or plea agreement to the chief procurement officer not later than thirty (30) days after being indicted, convicted, or pleading guilty or nolo contendere. (c) Upon receiving notice under subsection (b), the chief procurement officer shall forward a copy of the indictment, final judgment of conviction, or plea agreement to the executive director of fiscal review and the comptroller of the treasury. (d) If a vendor knowingly fails to provide notice under subsection (b), the chief procurement officer may fine the vendor ten thousand dollars ($10,000); provided, that, if the vendor is under contract and the total price of the contract is greater than two hundred thousand dollars ($200,000), the chief procurement officer may fine the vendor in an amount not to exceed five percent (5%) of the total price of the contract. fails to provide notice under subsection (b), the chief procurement officer may fine the vendor ten thousand dollars ($10,000); provided, that, if the vendor is under contract and the total price of the contract is greater than two hundred thousand dollars ($200,000), the chief procurement officer may fine the vendor in an amount not to exceed five percent (5%) of the total price of the contract. (e) A department or agency of this state may terminate any contract with a vendor who is found to be in violation of this section. Amended by 2016 Tenn. Acts, ch. 730, s 1, eff. 7/1/2016. ## Nearby sections - [Tenn. Code Ann. § 4-56-101 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-101.md) - [Tenn. Code Ann. § 4-56-102 Procurement commission - Creation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-102.md) - [Tenn. Code Ann. § 4-56-103 Proposed rules related to procurement - State protest committee - Creation - Commission's authority - Appeals](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-103.md) - [Tenn. Code Ann. § 4-56-104 Procurement office - Creation - Chief procurement officer - Personnel - Contracts and contract rights and responsibilities - Adoption of operational procedures](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-104.md) - [Tenn. Code Ann. § 4-56-105 Powers and duties of chief procurement officer](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-105.md) - [Tenn. Code Ann. § 4-56-106 Advisory council on state procurement - Creation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-106.md) - [Tenn. Code Ann. § 4-56-107 Requests for noncompetitive contracts to fiscal review committee - Review by the fiscal review committee - Exceptions to requests - Reports](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-107.md) - [Tenn. Code Ann. § 4-56-108 Review and approval by the comptroller of the treasury - Examination of documents- Documentation of the cancellation of procurements or rejection of all responses to a procurement - Protests - Executed documents - Posting of reports](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-108.md) - [Tenn. Code Ann. § 4-56-109 Vendor indictment of Antitrust Act - Notice - Fine - Contract termination](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-109.md) - [Tenn. Code Ann. § 4-56-110 Central database of information regarding grant recipients for monitoring purposes](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-110.md) - [Tenn. Code Ann. § 4-56-111 Report of emergency purchase](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-111.md) - [Tenn. Code Ann. § 4-56-112 Drones - Prohibited purchase - Contract termination](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-112.md) - [Tenn. Code Ann. § 4-56-113 Authority of chief procurement officer in acquisition of information systems and software](https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-113.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T4_C56_S4-56-109. Check the current official text before relying on it. Not legal advice.