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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 997 By: Frix
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6 AS INTRODUCED
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7 An Act relating to state procurement; creating the
7 Procurement Protection Act of 2025; providing short
8 title; defining terms; prohibiting certain entities
8 from entering into contracts with certain companies;
9 requiring certain disclosure statements; providing
9 penalties; providing exceptions to certain
10 prohibitions; providing for codification; and
10 declaring an emergency.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. NEW LAW A new section of law not to be
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15 codified in the Oklahoma Statutes reads as follows:
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16 This act shall be known and may be cited as the "Procurement
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17 Protection Act of 2025".
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18 SECTION 2. NEW LAW A new section of law to be codified
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19 in the Oklahoma Statutes as Section 85.59 of Title 74, unless there
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20 is created a duplication in numbering, reads as follows:
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21 A. As used in this act:
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22 1. "Company" means any sole proprietorship, organization,
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23 association, corporation, partnership, joint venture, limited
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24 partnership, limited liability partnership, limited liability
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1 company, or other entity or business association, including all
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2 wholly owned subsidiaries, majority owned subsidiaries, parent
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3 companies, or affiliates of such entities or business associations,
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4 that exists for the purpose of making profit;
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5 2. "Domicile" means the country in which a company is
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6 registered, the company's affairs are primarily completed, and where
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7 the majority of ownership share is held;
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8 3. "Federally banned corporation" means any company or
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9 designated equipment federally banned currently or banned after the
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10 effective date of this act. Such bans shall include those resulting
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11 from, but not limited to, the following federal agencies and acts:
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12 a. the Federal Communications Commission, including, but
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13 not limited to, any equipment or service deemed to
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14 pose a threat to national security identified on the
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15 Covered List developed pursuant to 47 C.F.R., Section
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16 1.50002 and published by the Public Safety and
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17 Homeland Security Bureau of the Federal Communications
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18 Commission pursuant to the federal Secure and Trust
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19 Communications Networks Act of 2019, 47 U.S.C.,
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20 Section 1601 et seq.,
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21 b. the United States Department of Commerce,
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22 c. the Cybersecurity and Infrastructure Security Agency,
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23 d. the Federal Acquisition Security Council, and
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1 e. Section 889 of the John S. McCain National Defense
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2 Authorization Act for Fiscal Year 2019, P. L. 115-232;
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3 4. "Foreign adversary" means adversarial nations including the
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4 People's Republic of China, the Russian Federation, the Islamic
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5 Republic of Iran, the Democratic People's Republic of Korea, the
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6 Republic of Cuba, the Venezuelan regime of Nicol�s Maduro, or the
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7 Syrian Arab Republic, including any agent of or any other entity
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8 under significant control of such foreign country of concern, or any
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9 other entity deemed a foreign adversary by the Governor;
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10 5. "Foreign adversary company" means a company domiciled in a
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11 foreign adversary, owned or controlled, in whole or in part, by the
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12 government of a foreign adversary, by individuals acting in official
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13 government capacities of a foreign adversary, by a company domiciled
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14 in a foreign adversary, or by any company otherwise under control of
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15 a foreign adversary; and
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16 6. "Government of China" shall mean the People's Republic of
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17 China led by the Chinese Communist Party.
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18 SECTION 3. NEW LAW A new section of law to be codified
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19 in the Oklahoma Statutes as Section 85.59a of Title 74, unless there
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20 is created a duplication in numbering, reads as follows:
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21 A. Except as provided under subsection D, the following
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22 companies shall be ineligible to bid on or submit a proposal for a
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23 contract with a state agency or political subdivision of the state
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24 for goods or services:
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1 1. A state-owned enterprise of a foreign adversary;
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2 2. A company domiciled within a foreign adversary;
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3 3. A foreign adversary company; or
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4 4. A federally banned corporation.
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5 B. A state agency or any political subdivision of the state
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6 shall require a company that submits a bid or proposal with respect
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7 to a contract for goods or services to certify that the company is
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8 not a company listed under subsection A of this section.
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9 C. If the Director of Office of Management and Enterprise
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10 Services determines that a company has submitted a false
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11 certification under subsection B of this section:
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12 1. The company shall be liable for a civil penalty in an amount
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13 that is equal to Two Hundred Fifty Thousand Dollars ($250,000.00) or
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14 twice the amount of the contract for which a bid or proposal was
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15 submitted, whichever is greater;
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16 2. The state agency or the Office of Management and Enterprise
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17 Services shall terminate the contract with company; and
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18 3. The company shall be ineligible to, and shall not, bid on a
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19 state contract for sixty (60) months.
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20 D. Notwithstanding the provisions of subsection B of this
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21 section, a state agency may enter into a contract for goods
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22 manufactured by a company listed under subsection A of this section
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23 if:
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24 1. There is no other reasonable option for procuring the good;
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1 2. The contract is pre-approved by the Director of the Office
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2 of Management and Enterprise Services; or
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3 3. Not procuring the good would pose a greater threat to this
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4 State than the threat associated with the procurement itself.
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5 E. Each bid or offer submitted for a state contract shall
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6 include a disclosure of whether or not the bidder, offeror, or any
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7 of its corporate parents or subsidiaries, within the twenty-four
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8 (24) months before submission of the bid or offer had business
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9 operations that involved contracts with or provision of supplies or
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10 services from or to any foreign adversary, state-owned enterprise of
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11 a foreign adversary, or a company domiciled within a foreign
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12 adversary.
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13 1. A bid or offer that does not include the disclosure required
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14 by this subsection may be given a grace period after the bid or
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15 offer is submitted to cure non-disclosure. A state agency or
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16 political subdivision receiving the bid may consider the disclosure
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17 when evaluating the bid or offer or awarding the contract.
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18 2. Each state agency or political subdivision shall provide the
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19 Office of Management and Enterprise Services with the name of each
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20 entity disclosed under paragraph 1 of this subsection as doing
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21 business or having done business in or with a foreign adversary, a
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22 state-owned enterprise of a foreign adversary, or a foreign
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23 adversary company.
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1 SECTION 4. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 85.59c of Title 74, unless there
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3 is created a duplication in numbering, reads as follows:
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4 A. Any company wishing to submit a bid or offer for a state
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5 contract or for any contract with a political subdivision of this
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6 state shall certify with the Office of Management and Enterprise
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7 Services that the bidder, offeror, or any of its corporate parents
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8 or subsidiaries, has not, within the sixty (60) months before
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9 submission of the bid or offer, had business operations that
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10 involved contracts with or provision of goods or services to any
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11 military entity of any foreign adversary, any state-owned enterprise
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12 of a foreign adversary, any political party of a foreign adversary,
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13 or any federally banned corporation.
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14 B. No bid or offer may be submitted for a state contract or for
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15 any contract with a political subdivision of this state if the
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16 bidder, offeror, or any of its corporate parents or subsidiaries,
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17 within the sixty (60) months before submission of the bid or offer,
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18 had business operations that involved contracts with or provision of
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19 goods or services to any military entity of any foreign adversary,
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20 any state-owned enterprise of a foreign adversary, or any federally
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21 banned corporation.
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22 C. The Director of the Office of Management and Enterprise
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23 Services shall provide each state agency and political subdivision
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24 with the name of each entity disclosed under this section as doing
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1 business or having done business in or with a foreign adversary, a
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2 state-owned enterprise of a foreign adversary, or a company
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3 domiciled within a foreign adversary.
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4 D. If the Director of the Office of Management and Enterprise
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5 Services determines that a company has submitted a false
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6 certification under subsection A of this section:
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7 1. The company shall be liable for a civil penalty in an amount
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8 that is equal to Two Hundred Fifty Thousand Dollars ($250,000.00) or
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9 twice the amount of the contract for which a bid or proposal was
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10 submitted, whichever is greater;
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11 2. The state agency or the Office of Management and Enterprise
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12 Services shall terminate the contract with the company; and
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13 3. The company shall be ineligible to, and shall not, bid on a
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14 state contract for sixty (60) months.
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15 SECTION 5. It being immediately necessary for the preservation
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16 of the public peace, health or safety, an emergency is hereby
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17 declared to exist, by reason whereof this act shall take effect and
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18 be in full force from and after its passage and approval.
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Req. No. 917 Page 7Every fact on this page links to its source, starting with the official bill record.