The proposed bill would amend current statutes by introducing the "Protection Procurement Act," which specifically prohibits companies that are domiciled in and controlled or majority owned by the People's Republic of China from bidding on or entering into contracts with state agencies for electronic or information technology. It requires these companies to submit a certification letter affirming they are not domiciled in China and are not reselling technology from Chinese companies. Additionally, if a company is found to have submitted a false certification, it would face penalties including a civil fine of $100,000, termination of contracts, and a ban from bidding on state contracts for at least 60 months.

Furthermore, the bill allows state agencies to contract with Chinese companies for electronic or information technology only under specific circumstances, such as when no reasonable alternatives exist and not procuring the technology would pose a greater threat to the state. The bill also defines key terms such as "company," "controlled," and "domicile," ensuring clarity in its application. Overall, the bill aims to enhance state procurement processes by restricting contracts with entities linked to the Chinese government while establishing penalties for non-compliance.

Statutes affected:
Introduced Version: 41-2553
House Engrossed Version: 41-2553
Senate Engrossed Version: 41-2553