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HB4193 HFLR Page 1
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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 4193 By: Chapman of the House
and
Frix of the Senate
COMMITTEE SUBSTITUTE
An Act relating to state procurement; creating the
Procurement Protection Act of 2026; defining terms;
prohibiting certain entities from entering into
contracts with certain companies; requiring certain
disclosure statements; providing penalties; providing
exceptions to certain prohibitions; providing for
noncodification; providing for codification; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE 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 2026".
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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, organization,
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
companies, or affiliates of such entities or business associations
that exist for the purpose of making profit;
2. "Control" means:
a. control as defined in the Investment Company Act of
1940, 15 U.S.C., Section 80a-2(a), or
b in the case of a company domiciled in the People’s
Republic of China, involvement in a company’s
governance structure, monitoring, or internal human
resources decisions of a company consistent with the
objectives set out in the Opinion on Strengthening the
United Front Work of the Private Economy in the New
Era issued by the General Office of the Central
Committee of the Chinese Communist Party (2020) or a
successor or similar document;
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3. "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;
4. "Federally banned corporation" means any company producing
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 pursuant 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 Trusted
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;
5. "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
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Republic of Cuba, the Venezuelan regime of Nicolás Maduro, and the
Syrian Arab Republic; and
6. "Foreign adversary company" means any company, other than a
United States person or United States subsidiary as such terms are
defined in 15 C.F.R., Section 772.1, that:
a. is domiciled, incorporated, issued, or listed in a
foreign adversary country,
b. is headquartered in a foreign adversary country,
c. has its principal place of business in a foreign
adversary country,
d. is controlled by the government of a foreign adversary
or any instrumentality thereof, or
e. is majority-owned by an entity controlled by the
government of a foreign adversary or any
instrumentality thereof.
If a parent company does not meet any of the criteria set forth
in this paragraph and does not recognize more than fifty percent
(50%) of the total annual global revenue of the parent company and
subsidiaries from a foreign adversary, such parent company shall not
be considered a foreign adversary company.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 85.59a of Title 74, unless there
is created a duplication in numbering, reads as follows:
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A. Except as provided under subsection D of this section, the
following companies shall be ineligible to bid on or submit a
proposal for a contract with a state agency for goods or services:
1. A state-owned enterprise of a foreign adversary;
2. A company domiciled within a foreign adversary;
3. A foreign adversary company; or
4. A federally banned corporation.
B. A state agency 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 the Office of Management and Enterprise
Services determines that a company has knowingly 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 the company; and
3. The company shall be ineligible to, and shall not, bid on a
state contract for sixty (60) months and shall provide proof of
ownership change to the State Purchasing Director before being
eligible again to bid on state contracts.
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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 this section
if:
1. There is no other reasonable option for procuring the good;
and
2. The contract is pre-approved by the Director of the Office
of Management and Enterprise Services after a determination that not
procuring the good would pose a greater threat to this state than
the threat associated with the procurement.
E. This act does not apply to a company, including a third
party vendor, that is in compliance with the Secure and Trusted
Communications Networks Act of 2019, P.L. 116-124.
SECTION 4. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT OVERSIGHT, dated
03/03/2026 - DO PASS, As Amended and Coauthored.