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

A1249

ASSEMBLY, No. 1249

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman MICHAEL INGANAMORT

District 24 (Morris, Sussex and Warren)

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

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

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

prohibiting State contracts for technology with
Chinese government-owned or affiliated companies and supplementing chapter 32
of Title 52 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� a.� As used in this
section:

���� �Company� means any sole
proprietorship, organization, association, corporation, partnership, joint
venture, limited partnership, limited liability partnership, limited liability
company, or other entity or business association, including any wholly owned
subsidiary, majority owned subsidiary, parent company, or affiliate of such
entity or business association, that exists for the purpose of making profit.

���� ��Government of China� means
the government of the People�s Republic of China led by the Chinese Communist
Party.

���� "State agency" means
the legislative or executive branch of the State, including, but not limited
to, any department, board, bureau, commission, division, office, council,
agency, or instrumentality thereof, or independent agency, public authority or
public benefit corporation.

���� b.� A company owned by,
operated by, or affiliated with the government of China shall be ineligible to,
and shall not, bid on or submit a proposal, directly or indirectly through a
third party, for a contract to provide technology goods or services with any State
agency.

���� c.� A State agency shall
require a company that submits a bid or proposal with respect to a contract for
technology goods or services to certify that the company is eligible to bid or
submit the proposal.

���� d.� If the Division of
Purchase and Property in the Department of the Treasury determines that a
company has submitted a false certification under subsection c. of this
section:

���� (1)� the company shall be
liable for a civil penalty in an amount that is equal to the greater of
$250,000 or twice the amount of the contract for which a bid or proposal was
submitted; and

���� (2)� the State agency or the Division
of Purchase and Property shall terminate the contract with the company; and

���� 2.� This act shall take effect
immediately.

STATEMENT

���� This bill provides that any
company owned or operated by, or affiliated with, the Government of China will
be ineligible to bid or submit a proposal for a technology contract with any
State agency.

���� This bill also requires
companies that submit a bid or proposal with respect to a contract for
technology goods and services to certify that the company is eligible to bid or
submit a proposal.

���� This bill establishes that, if
the Division of Purchase and Property determines that a company has submitted a
false certification, the company will be liable for a civil penalty in an
amount that is equal to the greater of $250,000 or twice the amount of the
contract for which a bid or proposal was submitted and the State agency, or the
Division of Purchase and Property, will terminate the contract with the
company.