New Jersey Assembly Bill A5384

New Jersey 2022-2023 Regular Session

• Introduced: 5/8/23
• Refer: 5/8/23

Caption

Prohibits State contracts for technology with Chinese government-owned or affiliated companies.

Impact

If enacted, A5384 will require all companies bidding on state technology contracts to certify their eligibility, specifically declaring they are not affiliated with the Chinese government. This change would significantly impact the dynamics of state procurement processes, as companies must adhere to new compliance requirements to participate in bidding for state contracts. The bill aims to enhance the security framework within state operations and curb potential risks associated with foreign influence.

Summary

Assembly Bill A5384 aims to prohibit state agencies in New Jersey from entering into contracts for technology goods or services with companies that are owned or operated by, or affiliated with, the government of China. This legislation reflects growing concerns regarding national security and the implications of foreign influence in the technology sector. The bill sets forth that only eligible companies as defined in the legislation can submit proposals for state technology contracts, emphasizing a scrutinized vetting process against foreign affiliations.

Contention

Some points of contention surrounding this bill may arise from concerns over its broad definitions of eligibility and the implications of banning a wide array of companies affiliated with the Chinese government. Critics could argue that this legislation may stifle competition and innovation within the tech sector in New Jersey, potentially limiting the pool of available vendors and driving up costs. Proponents, on the other hand, argue that it is a crucial step towards safeguarding state interests and ensuring that sensitive information remains protected from foreign entities.