25 HB 113/AP House Bill 113 (AS PASSED HOUSE AND SENATE) By: Representatives McDonald III of the 26 th , Hong of the 103 rd , Gambill of the 15 th , Wade of the 9 th , Powell of the 33 rd , and others A BILL TO BE ENTITLED AN ACT To amend Title 50 of the Official Code of Georgia Annotated, relating to state government, 1 so as to prohibit the state or its agencies from purchasing goods from certain foreign2 countries or related entities; to provide for a list of such goods; to provide for penalties; to3 provide for definitions; to repeal provisions related to contracting with China; to provide for4 powers of the Georgia Technology Authority; to provide for related matters; to repeal5 conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended9 in Part 1 of Article 3 of Chapter 5, relating to general authority, duties, and procedure, by10 revising Code Section 50-5-84.1, relating to contracting with companies owned by Russia11 or Belarus, as follows:12 "50-5-84.1.13 (a) As used in this Code section, the term:14 (1) 'Company' means any sole proprietorship, organization, association, corporation, 15 partnership, joint venture, limited partnership, limited liability partnership, limited16 H. B. 113 - 1 - 25 HB 113/AP liability company, or other entity or business association, including all wholly owned17 subsidiaries, majority owned subsidiaries, parent companies, or affiliates of such entities18 or business associations, that exists for the purpose of making profit 'Concerned goods'19 means goods, including component parts, services, and technology, produced by a foreign20 company of concern deemed by the Georgia Technology Authority to pose a security21 threat to this state or its residents.22 (2) 'Government of Belarus' means the Republic of Belarus 'Foreign company of23 concern' means a sole proprietorship, organization, association, corporation, partnership,24 joint venture, limited partnership, limited liability partnership, limited liability company,25 or other entity or business association, including all wholly owned subsidiaries, majority26 owned subsidiaries, parent companies, or affiliates of such entities or business27 associations, that exists for the purpose of making profit and is:28 (A) Organized or incorporated in a foreign country of concern;29 (B) Owned or controlled by the government, a political subdivision, or a political party30 of a foreign country of concern; or31 (C) Has a principal place of business in a foreign country of concern.32 (3) 'Government of Russia' means the Russian Federation 'Foreign country of concern'33 means a country whose government is designated as a foreign adversary by the United34 States Secretary of Commerce pursuant to 15 C.F.R. Section 791.4.35 (4) 'Scrutinized company' means any company owned or operated by the government of36 Russia or the government of Belarus.37 (b) A scrutinized company shall be ineligible to, and shall not, bid on or submit a proposal38 for a contract with a state agency for goods or services Pursuant to the authority provided39 in subparagraph (a)(27)(B) of Code Section 50-25-4, the Georgia Technology Authority40 shall maintain an up-to-date list of concerned goods produced by a foreign company of41 concern or a foreign country of concern.42 H. B. 113 - 2 - 25 HB 113/AP (c) A state agency shall require a company that submits a bid or proposal with respect to43 a contract for goods or services to certify that the company is not a scrutinized company44 The state or a state agency shall not purchase concerned goods from a foreign company of45 concern, a foreign country of concern, or a third-party vendor or reseller.46 (d) If the Department of Administrative Services determines that a company has submitted47 a false certification under subsection (c) of this Code section If a company of concern,48 directly or through a third-party vendor or reseller, sells concerned goods to the state or a49 state agency:50 (1) The foreign company of concern or third-party vendor or reseller shall be liable for51 a civil penalty in an amount that is equal to the greater of $250,000.00 or twice triple the52 amount of the contract for which a bid or proposal was submitted entire purchase value;53 (2) The state agency or the Department of Administrative Services shall terminate the54 contract with the foreign company of concern or third-party vendor or reseller; and55 (3) The foreign company of concern or third-party vendor or reseller shall be ineligible56 to, and shall not, bid on a state contract for an award of future state contracts for a period57 determined by the Georgia Technology Authority."58 SECTION 2.59 Said title is further amended in said part by repealing Code Section 50-5-84.2, relating to60 contracting with companies owned by China.61 SECTION 3.62 Said title is further amended in Chapter 25, relating to the Georgia Technology Authority,63 by revising paragraph (27) of subsection (a) of Code Section 50-25-4, relating to general64 powers, as follows:65 "(27)(A) To establish and enforce standard specifications which shall apply to all66 technology and technology resource related supplies, materials, and equipment67 H. B. 113 - 3 - 25 HB 113/AP purchased or to be purchased for the use of the state government or any of its agencies, 68 which specifications shall be based on and consistent with industry accepted open69 network architecture standards; and 70 (B) To evaluate security risks associated with the purchase of technology-related goods71 and services made pursuant to Article 3 of Chapter 5 of this title and to determine to72 what extent the purchase of goods and services, in part or in whole, directly or73 indirectly, poses a potential security threat to this state or its residents;"74 SECTION 4.75 All laws and parts of laws in conflict with this Act are repealed. 76 H. B. 113 - 4 -