Printed on recycled paper 131st MAINE LEGISLATURE FIRST REGULAR SESSION-2023 Legislative Document No. 877S.P. 374 In Senate, February 24, 2023 An Act to Prohibit State Contracts with Companies Owned or Operated by the Government of the People's Republic of China Reference to the Committee on State and Local Government suggested and ordered printed. DAREK M. GRANT Secretary of the Senate Presented by Senator KEIM of Oxford. Page 1 - 131LR1814(01) 1 2 is enacted to read: 3 4 5 6 following terms have the following meanings. 7 A. "Company" means any type of legal business entity recognized under the laws of 8 the State, including any subsidiaries, parent companies or affiliates of the company that 9 exists for the purposes of making a profit. 10 B. "Government of China" means the government of the People's Republic of China. 11 C. "Subject company" means a company that is owned or operated by the government 12 of China. 13 14 with the State for goods or services shall certify that the company is not a subject company. 15 16 proposal, directly or indirectly, for a contract with a public or private entity that directly or 17 indirectly receives state funding. 18 19 subsection 2 commits a civil violation for which a fine may be adjudged in an amount that 20 is the greater of: 21 A. Twice the amount of the contract for which the bid or proposal was submitted; or 22 B. $250,000. 23 The State shall terminate the contract with a company found to have violated subsection 24 2 and the company is subject to the prohibition in subsection 3. 25 26 This bill requires that a company that submits a bid or proposal for a contract with the 27 State for goods or services must certify that the company is not owned or operated by the 28 government of the People's Republic of China. It provides that a company owned or 29 operated by the government of the People's Republic of China is ineligible for and may not 30 bid on or submit a proposal, directly or indirectly, for a contract with a public or private 31 entity that directly or indirectly receives state funding. 26 27 28 29 30 31