HOUSE BILL NO. 1215 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE OEHLERKING.
2581H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 34, RSMo, by adding thereto one new section relating to the procurement protection act, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 34, RSMo, is amended by adding thereto one new section, to be 2 known as section 34.605, to read as follows: 34.605. 1. This section shall be known and may be cited as "The Procurement 2 Protection Act". 3 2. As used in this section, the following terms mean: 4 (1) "Company", any sole proprietorship, organization, association, corporation, 5 partnership, joint venture, limited partnership, limited liability partnership, limited 6 liability company, or other entity or business association, including all wholly owned 7 subsidiaries, majority owned subsidiaries, parent companies, or affiliates of such entities 8 or business associations, that exists for the purpose of making profit; 9 (2) "Domicile", either the country in which a company is registered, where the 10 company's affairs are primarily completed, or where the majority of ownership share is 11 held; 12 (3) "Federally banned corporation", any company or designated equipment 13 currently banned at the federal level including, but not limited to, any of the following 14 authorities: 15 (a) The Federal Communications Commission including, but not limited to, any 16 equipment or service deemed to pose a threat to national security and identified on the 17 Covered List developed under 47 CFR 1.50002 and published by the Public Safety and
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1215 2
18 Homeland Security Bureau of the Federal Communications Commission under the 19 federal Secure and Trust Communications Networks Act of 2019, 47 U.S.C. 1601 et seq.; 20 (b) The Department of Commerce including, but not limited to, any entity listed 21 under Subpart No. 4 to Part 744, Title 15, or Subpart No. 7 to Part 744, Title 15; 22 (c) Section 889 of the John. S. McCain National Defense Authorization Act, Pub. 23 L. 115-232; 24 (d) Section 1260H of the William M (Mac) Thornberry National Defense 25 Authorization Act, Pub. L. 116-283; 26 (e) Section 5949 of the James M lnhofe National Defense Authorization Act for 27 Fiscal, Pub. L. 117-263; 28 (f) Any entity sanctioned by the Office of Foreign Assets Control of the 29 Department of the Treasury including, but not limited to, placement on any of the 30 following lists: 31 a. Specially Designated Nationals and Blocked Persons (SDN); 32 b. Non-SDN Menu-Based Sanctions (NS-MBS); 33 c. Non-SDN Chinese Military-Industrial Complex Companies (NS-CMIC); or 34 d. Sectoral Sanctions Identifications (SSI); or 35 (g) Any entity subject to a Federal Acquisition Supply Chain Security Act order 36 issued by the Federal Acquisition Security Council; 37 (4) "Foreign adversary", the People's Republic of China, the Russian 38 Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, 39 the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab 40 Republic, including any agent of or any other entity under significant control of such 41 foreign adversary, or any other entity deemed by the governor in consultation with the 42 department of public safety; 43 (5) "Foreign adversary company", any company other than a United States 44 person or subsidiary as defined in 15 CFR 772.1, that: 45 (a) Is domiciled, incorporated, issued, or listed within a foreign adversary; 46 (b) Is headquartered within a foreign adversary; 47 (c) Has its principal place of business within a foreign adversary; 48 (d) Is controlled by the government of a foreign adversary or the military or 49 ruling political party of a foreign adversary; or 50 (e) Is majority-owned by an entity controlled by the government of a foreign 51 adversary or the military or ruling political party of a foreign adversary; 52 53 If a parent company does not meet the above criteria and does not recognize more than 54 fifty percent of its total annual global revenue from a subsidiary or affiliate that HB 1215 3
55 qualifies as a foreign adversary company, the parent company shall not be considered a 56 foreign adversary company solely because one of more of its subsidiaries or affiliates 57 meets the definition of a foreign adversary company; 58 (6) "Government of China", the People's Republic of China led by the Chinese 59 Communist Party. 60 3. Except as provided in subsection 6 of this section, the following companies 61 shall not be eligible to bid on or submit a proposal for a contract for goods and services 62 with a state agency or political subdivision of the state: 63 (1) A foreign adversary company; or 64 (2) A federally banned corporation. 65 4. For the purposes of complying with subsection 3 of this section, any company 66 that submits a proposal for a contract for goods and services to any state agency or 67 political subdivision of the state shall certify that the company is not a foreign adversary 68 company or a federally banned corporation. 69 5. If the office of administration determines that a company has submitted a 70 false certification under subsection 4 of this section: 71 (1) The company shall be liable for a civil penalty in an amount that is equal to 72 the greater of two hundred fifty thousand dollars or twice the amount of the contract 73 awarded to the company; 74 (2) The office of administration shall terminate the contract with the company; 75 and 76 (3) The company shall be ineligible to bid on a state contract for five years. 77 6. The provisions of subsection 3 of this section notwithstanding, a state agency 78 or political subdivision of the state may enter into a contract for goods manufactured by 79 a foreign adversary company or a federally banned corporation under the following 80 circumstances: 81 (1) There is no other reasonable option for procuring the good; 82 (2) The contract is pre-approved by the office of administration; and 83 (3) Not procuring this good would pose a greater threat to the state than the 84 threat associated with the good itself. ✔
Statutes affected: