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Wisconsin Legislature: AB662: Text as Enrolled
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AB662: Text as Enrolled
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Date of enactment:
2025 Assembly Bill 662
Date of publication*:
2025 WISCONSIN ACT
An Act
to create
20.933 of the statutes;
relating to:
prohibiting state contracting with certain business entities and providing a penalty.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB662,1
Section
1
.
20.933 of the statutes is created to read:
20.933
Prohibiting state contracting with certain business entities.
(1)
Definitions.
In this section:
(a) “Business entity” means any organization or enterprise engaged in commerce, whether or not operated for profit.
(b) “Contract” means to become a party to any agreement for the acquisition by purchase, lease, or barter of property, goods, or services for the direct benefit or use of any of the parties.
(c) “Department” means the department of administration.
(d) 1. Except as provided under subd. 2., “foreign adversary” means any of the following:
a. The People’s Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region.
b. The Republic of Cuba.
c. The Islamic Republic of Iran.
d. The Democratic People’s Republic of Korea.
e. The Russian Federation.
f. The Venezuelan regime of Nicolás Maduro.
2. “Foreign adversary” does not include any country, government, regime, or person specified under subd. 1. if the country, government, regime, or person is not included in the list of foreign adversaries under 15 CFR 791.4, as amended from time to time.
(e) “Prohibited business entity” means a business entity that satisfies any of the following:
1. Is primarily domiciled, incorporated, issued, or listed within the boundaries of a country or other territory controlled by a foreign adversary.
2. Is headquartered within the boundaries of a country or other territory controlled by a foreign adversary.
3. Has its principal place of business within the boundaries of a country or other territory controlled by a foreign adversary.
4. Is controlled or is majority-owned by the government of the People’s Republic of China, the Chinese Communist Party, the Chinese military, or an instrumentality of any of the foregoing, including the State-owned Assets Supervision and Administration Commission of the State Council of the People’s Republic of China and the National Council for Social Security Fund of the People’s Republic of China.
5. Is a subsidiary of a business entity that satisfies subd. 1., 2., 3., or 4.
6. Sells the final products of a business entity described in subd. 1., 2., 3., 4., or 5. to a state agency.
(f) “State agency” means an association, authority, board, department, commission, independent agency, institution, office, society, system, or other body in state government created or authorized to be created by the constitution or any law, including the legislature and the courts.
(g) “Subsidiary” means a business entity that is majority owned, controlled, or operated by another business entity.
(2)
Prohibited contracts.
(a) No state agency may contract with a prohibited business entity.
(b) No contract between any person and a state agency shall be valid, binding, and enforceable unless the person provides prior written certification to the state agency that the person is not a prohibited business entity and that the person has made every effort to ensure that the goods or services being contracted for do not originate from a prohibited business entity. A state agency may rely on such certification without further investigation.
(c) If any person contracting with a state agency becomes a prohibited business entity, the person shall be considered for that reason to have breached the contract, and the person shall without delay provide written notification of the breach to the state agency. The state agency may terminate the contract and may pursue all appropriate legal remedies for the breach.
(3)
Exemption.
Subsection (2) does not prohibit a contract to which all of the following apply:
(a) The goods or services offered under the contract are not obtainable by the state agency by other reasonable means.
(b) The harm to the state in failing to execute the contract outweighs the public interests served by the prohibition under sub. (2).
(c) The contract is approved by the department.
(4)
Complaints; forfeitures.
Any person may file a complaint with the department alleging a violation of sub. (2) on a form prescribed by the department. The department shall investigate each complaint. If upon investigation the department determines a person has violated sub. (2), all of the following apply:
(a) The person shall be liable for a forfeiture equal to the greater of the following, as determined by the department:
1. $250,000.
2. An amount equal to twice the amount of the value of the contract on which the person submitted a bid or proposal.
3. An amount equal to the total amount of all pecuniary losses suffered by any state as a result of such violation.
(b) The person is ineligible to contract with a state agency for 5 years following the date of the department’s determination of a violation.
(5)
Enforcement.
The attorney general may bring an action in any court of competent jurisdiction to enforce this section.
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