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ENGROSSED SENATE
BILL NO. 997 By: Frix of the Senate
and
Sneed of the House
[ state procurement - contracts - disclosure
statements - penalties - exceptions - noncodification
- codification -
emergency ]
BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the “Procurement
Protection Act of 2025 ”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 85.59 of Title 74, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. “Company” means any sole proprietorship, organizat ion,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company, or other entity or business association, including all
wholly owned subsidiaries, majority owned subsidiaries, parent
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companies, or affiliates of such entities or business associations,
that exists for the purpose of making profit;
2. “Domicile” means the country in which a company is
registered, the company ’s affairs are primarily completed, and where
the majority of ownership share is held;
3. “Federally banned corporation ” means any company or
designated equipment federally banned currently or banned after the
effective date of this act. Such bans shall include those resulting
from, but not limited to, the following federal agencies and acts:
a. the Federal Communications Commission, including , but
not limited to, any equipment or service deemed to
pose a threat to national security identified on the
Covered List developed pursu ant to 47 C.F.R., Section
1.50002 and published by the Public Safety and
Homeland Security Bureau of the Federal Communications
Commission pursuant to the federal Secure and Trust
Communications Networks Act of 2019, 47 U.S.C. ,
Section 1601 et seq.,
b. the United States Department of Commerce ,
c. the Cybersecurity and Infrastructure Security Agency,
d. the Federal Acquisition Security Council, and
e. Section 889 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 , P. L. 115-232;
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4. “Foreign adversary” means adversarial nations including the
People’s Republic of China, the Russian Federation, the Islamic
Republic of Iran, the Democratic People ’s Republic of Korea, the
Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the
Syrian Arab Republic, including any age nt of or any other entity
under significant control of such foreign country of concern, or any
other entity deemed a foreign adversary by the Governor;
5. “Foreign adversary company ” means a company domiciled in a
foreign adversary, owned or controlled, i n whole or in part, by the
government of a foreign adversary, by individuals acting in official
government capacities of a foreign adversary, by a company domiciled
in a foreign adversary, or by any company otherwise under control of
a foreign adversary; and
6. “Government of China” shall mean the People ’s Republic of
China led by the Chinese Communist Party.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Se ction 85.59a of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. Except as provided under subsection D, the following
companies shall be ineligible to bid on or submit a proposal for a
contract with a state agency or political subdivision of the state
for goods or services:
1. A state-owned enterprise of a foreign adversary;
2. A company domiciled within a foreign adversary;
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3. A foreign adversary company; or
4. A federally banned corporation.
B. A state agency or any political subdivision of the state
shall require a company that submits a bid or proposal with respect
to a contract for goods or services to certify that the company is
not a company listed under subsection A of this section.
C. If the Director of Office of Management and Enterprise
Services determines that a company has submitted a false
certification under subsection B of this section:
1. The company shall be liable for a civil penalty in an amount
that is equal to Two Hundred Fifty Thousand Dollars ( $250,000.00) or
twice the amount of the contract for which a bid or proposal was
submitted, whichever is greater ;
2. The state agency or the Office of Management and Enterprise
Services shall terminate the contract with company; and
3. The company shall be ineligible to, and shall not, bid on a
state contract for sixty (60) months.
D. Notwithstanding the provisions of subsection B of this
section, a state agency may enter into a contract for goods
manufactured by a company listed under subsection A of th is section
if:
1. There is no other rea sonable option for procuring th e good;
2. The contract is pre-approved by the Director of the Office
of Management and Enterprise Services ; or
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3. Not procuring the good would pose a greater threat to th is
State than the threat associated with the procurement itself.
E. Each bid or offer submitted for a state contract shall
include a disclosure of whether or not the bidder, offeror, or any
of its corporate parents or subsidiaries, within the twenty -four
(24) months before submission of the bid or offer ha d business
operations that involved contracts with or provision of supplies or
services from or to any foreign adversary, state -owned enterprise of
a foreign adversary, or a company domiciled within a foreign
adversary.
1. A bid or offer that does not inc lude the disclosure required
by this subsection may be given a grace period after the bid or
offer is submitted to cure non -disclosure. A state agency or
political subdivision receiving the bid may consider the disc losure
when evaluating the bid or offer or awarding the contract.
2. Each state agency or political subdivision shall provide the
Office of Management and Enterprise Services with the name of each
entity disclosed under paragraph 1 of this subsection as doing
business or having done business in or with a foreign adversary, a
state-owned enterprise of a foreign adversary, or a foreign
adversary company.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes a s Section 85.59c of Title 74, unless the re
is created a duplication in numbering, reads as follows:
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A. Any company wishing to submit a bid or offer for a state
contract or for any contract with a political subdivision of th is
state shall certify with the Office of Management and Enterprise
Services that the bidder, offeror, or any of its corporate parents
or subsidiaries, has not , within the sixty (60) months before
submission of the bid or offer, had business operations that
involved contracts with or pro vision of goods or services to any
military entity of any foreign adversary, any state -owned enterprise
of a foreign adversary, any political party of a foreign adversary,
or any federally banned corporation.
B. No bid or offer may be submitted for a state contract or for
any contract with a po litical subdivision of th is state if the
bidder, offeror, or any of its corporate parents or subsidiaries,
within the sixty (60) months before submission of the bid or offer,
had business operations that involved con tracts with or provision of
goods or services to any military entity of any foreign adversary,
any state-owned enterprise of a foreign adversary, or any federally
banned corporation.
C. The Director of the Office of Management and Enterprise
Services shall provide each state agency and politica l subdivision
with the name of each entity disclosed under this section as doing
business or having done business in or with a foreign adversary, a
state-owned enterprise of a foreign adversary, or a company
domiciled within a foreign adversary.
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D. If the Director of the Office of Management and Enterprise
Services determines that a company has submitted a false
certification under subsection A of this section:
1. The company shall be liable for a civil penalty in an amount
that is equal to Two Hundred Fi fty Thousand Dollars ($250,000.00) or
twice the amount of the contract for which a bid or proposal was
submitted, whichever is greater;
2. The state agency or the Office of Management and Enterprise
Services shall terminate the contract with the company; and
3. The company shall be ineligible to, and shall not, bid on a
state contract for sixty (60) months.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the Senate the 26th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives