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Tennessee law prevents companies doing business with state from boycotting Israel

A Tennessee law passed in 2022 prohibits companies that have large contracts with public entities from boycotting Israel.

KNOXVILLE, Tenn. — As calls for local leaders to get involved in the war in Gaza intensify, Tennessee law prevents companies that do business with public entities from boycotting Israel. 

According to TCA 12-4-119, companies with contracts above $250,000 with public entities are not allowed to be "currently engaged in, and will not for the duration of the contract engage in, a boycott of Israel." 

That law includes all boards, commissions, counties, municipalities and institutions. 

The contract for the downtown stadium in Knoxville, the construction contract for the walking bridge between Gibbs Middle and High School and the contract for the demolition of Rule High School are a few examples of local projects with provisions preventing the companies from a boycott of Israel. 

The law was overwhelmingly passed in 2022. Reps. Sam McKenzie and Gloria Johnson (D-Knoxville) both voted against it in the House. Sen. Heidi Campbell (D-Nashville) was the only no-vote in the Tennessee Senate. 

The Israel-Gaza Crisis began on Oct. 7, 2023, when Hamas carried out an attack almost exactly 50 years after the Yom Kippur War. That attack killed around 1,200 people, according to Israeli leaders. In the months since then, Israeli bombings and attacks in Gaza have killed more than 34,000 Palestinian people — including many women and children.

On UT's campus and at city council meetings in Knoxville, demonstrators have called for local leaders to condemn the war in Gaza. Following a vigil memorializing the people killed in Gaza, demonstrators marched on the UT campus in early May. Seven students and two people not affiliated with UT were later arrested after being told to leave.

The group later formed the People's School for Gaza — an ad hoc gathering of community members and students who join daily to learn about the history of Gaza and speak about Palestinian culture. UT said the group can use a plaza near the Student Union until at least May 18.

The People's School for Gaza had a list of five demands, following a "People's Assembly" meeting. Those demands are listed below.

    1. UT must divest from, cut ties with, and end recruitment for weapons manufacturers who profit from killing innocent humans - our family members and children in Gaza.
      Specifically, Lockheed Martin, BAE Systems, RTX (formerly Raytheon), and Boeing.
    2. UT must disclose all university investments and financial ties. If UT believes it can wash its hands of its complicity in genocide by blaming a third party for investing in what is
      "profitable," UT must end its relationship with that third party and must have more control of its investments.
    3. UT permanently end its study abroad trips to Israel which deny students with Palestinian ID's (including dual US/Palestinian citizens) equal opportunity. People with Palestinian IDs are automatically deported from Israel because of their ethnicity and national origin.
    4. UT must divest from Israeli companies until the genocide, apartheid, and illegal and belligerent occupation end and Palestinian Independence is established. 
    5. There should be no Palestinian exception to free speech. The right to free speech and assembly does not end at 10PM. UT must protect our right to free assembly and speech at all times of day and night. UT, Donde Plowman, and University Leaders care more about their investments, their ties to weapons manufacturers, and their profits than they do about their students and our right to protest a genocide. Free speech does not have a bedtime.

The University of Tennessee said it estimates less than 0.2% of its portfolio investments involve companies in Israel. A spokesperson said UT does not base investment decisions on political or social stances. 

The system's full statement is below: 

The University of Tennessee’s investment policy and practice focus on achieving the best possible returns to ensure stewardship of gift funds to honor donor intent and provide funding to enhance our campus operations and student experience. To that end, the endowment invests globally, utilizing institutional, third-party investment managers. This approach follows prudent investment practice. As a public institution serving a variety of stakeholders, the University does not base investment decisions on political or social stances.

Background on the Israel-Gaza Crisis

More than 34,000 Palestinians have been killed in Gaza since Oct. 7, according to the Ministry of Health in Gaza. Israeli officials said around 1,200 people died in the Oct. 7 Hamas-led raid in Southern Israel, and some 570 Israeli soldiers have reportedly been killed since.

The ongoing Israeli offensive has also been internationally condemned, and the International Court of Justice called for Israel to prevent death and destruction after South Africa filed allegations that the country committed genocide in Gaza.

Across the U.S., protests at college campuses have also flared to show support for Palestine. At several schools nationally, police and National Guard members were called to force the demonstrations to an end.

The Oct. 7 bombing followed decades of tension, during which time the Human Rights Watch said Gazans lived in an "open-air prison."  Most of the tension centers around Palestine and Gaza, an area that was divided as part of the "Nakba" — a period of displacements in the region following World War II as Israel was created.

"It remains a deeply traumatic event in their collective memory and continues to shape their struggle for justice and for their right to return to their homes," the UN said about the Nakba.

Hamas was elected to power during the mid-2000s. The United Nations said in 2019 more than half of all people in Gaza were under 18 years old, indicating they were not able to vote for Hamas when Israel declared war. 

The group launched the attack on the anniversary of the Yom Kippur War — causing an initial death toll that was unseen since the 1973 war between Israel, Egypt and Syria. The day after the Oct. 7 bombing, Israel declared war against Hamas and started bombarding Gaza.

The Gaza Strip was home to millions of people. The UN said more than 70% of all housing units have been destroyed, and around 80% have been destroyed in the northern area. The UN said the entire Gazan population is facing a "severe food crisis," escalating the risk of famine and especially impacting vulnerable groups. A UN Special Rapporteur for food also said Israel "has mounted a starvation campaign."

It also said on April 30 that the region's health system was in jeopardy. Only five hospitals in northern Gaza were partially functional, and only six were operational in the southern part of the region.

It said around 86% of schools were damaged, and 72% would need at least major rehabilitation work. It also said around 1.7 million people were displaced across the Gaza Strip, with families having to move multiple times in search of safety.

Around 200 days since the start of the crisis, violence continued flaring across the region.

The UN also said Israeli settler violence was prevalent, and over two days there were 18 incidents involving Israeli settlers. It said armed settlers held Palestinian farmers at gunpoint, seized crops, and assaulted shepherds. In the Jordan Valley, the UN also said settlers entered and tore down Palestinian tents.

Since Oct. 7, Israel has cut off much access to food, water, medicine and electricity in Gaza. On May 7, Israeli forces took control of Gaza's Rafah border crossing, prompting fears of a full-scale invasion of the city after talks in Cairo of a cease-fire with Hamas without any clear agreement.

The Pentagon said Monday that U.S. Army vessels and a U.S. Navy ship were part of an effort to build a floating platform to distribute aid to the Gaza Strip. The Pentagon said the effort would cost around $320 million, and a U.S. military official also said the American Army engineering unit teamed with an Israeli Defense Force engineering unit recently to practice installing parts of the platform, according to the Associated Press.

Aid has been slow to get into Gaza, with backups of trucks waiting for Israeli inspections. The U.S. and other nations used air drops to send food into Gaza, and aid organizations said several hundred trucks of resources are needed per day to fully help the region. With the Rafah crossing captured, Israel gained full control over the entry and exit of people and goods for the first time since it withdrew soldiers and settlers from Gaza in 2005.

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