Tennessee is considering legislation to...

...prohibit work on state contracts from being performed overseas?
YES, does not include foreign call centers

... require overseas call centers to identify their location over the phone to consumers? YES

Rate of unemployment (April 2004):
4.9%, below national average

Higher unemployment (as of April 2004) since recession began in March 2001? YES

Pending bills and their descriptions, quoted from TechsUnite.org:

Senate Bill 2344, introduced Jan. 26, 2004, "requires state contracts to be awarded only to U.S. citizens or legal residents of the United States."

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Sources: TechsUnite.org, The Economic Policy Institute, CNN/Money, CNet News.Com