New Jersey Assembly Bill A253

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

If enacted, A253 would have a substantial impact on state procurement policies by forbidding collaboration with companies linked to the Chinese government. This is particularly relevant in the context of growing concerns regarding cybersecurity and national security, where state agencies are increasingly scrutinizing the origins and affiliations of the technology solutions they utilize. The objective is to prevent potential threats tied to foreign influences, particularly those perceived as adversarial.

Summary

Assembly Bill A253 aims to prohibit any company that is owned, operated, or affiliated with the Government of China from bidding on or submitting proposals for technology contracts with any state agency in New Jersey. The bill specifies that state agencies must require companies to certify their eligibility before submitting bids or proposals for technology goods and services. Violation of this requirement can lead to significant penalties, including civil fines and contract termination.

Contention

While the bill addresses important security issues, it may raise points of contention regarding the efficacy and breadth of the prohibition. Critics may argue that such sweeping restrictions could limit competitive bidding and technological innovation from reputable companies within the global market, impacting cost and quality for state contracts. There is also a concern regarding the legal and operational implications of requiring certifications that companies can be penalized for, especially around false certifications.