HB113: HB113 State government; prohibit the state or its agencies from purchasing goods from certain foreign countries or related entities

Georgia law previously barred state agencies from contracting with companies owned by Russia or Belarus, and separately restricted contracts with companies tied to China. This bill scraps that narrow, country-specific approach and replaces it with a broader system tied to federal designations. Under the new version of O.C.G.A. § 50-5-84.1, the state and its agencies cannot buy 'concerned goods,' meaning goods, services, or technology from a 'foreign company of concern' or a 'foreign country of concern.' A foreign country of concern is one whose government the U.S. Secretary of Commerce has designated a foreign adversary. The Georgia Technology Authority must keep an updated list of these concerned goods. Companies that sell such goods to the state anyway face steep civil penalties, contract termination, and a ban on future state contracts. The bill also repeals the old China-specific contracting law and expands the Georgia Technology Authority's power to evaluate security risks in technology purchases.

• Bars the state and its agencies from purchasing goods, services, or technology ('concerned goods') from a foreign company or foreign country of concern, or from third-party vendors reselling such goods.
• Defines a 'foreign country of concern' as one whose government the U.S. Secretary of Commerce has designated a foreign adversary under federal regulations (15 C.F.R. § 791.4).
• Repeals the prior law (O.C.G.A. § 50-5-84.2) that separately restricted state contracts with companies owned by China.
• Requires the Georgia Technology Authority to maintain an up-to-date list of concerned goods and to evaluate security risks tied to technology purchases.
• Sets penalties for violations: a civil fine of the greater of $250,000 or triple the purchase value, mandatory contract termination, and a ban on future state contracts for a period the Georgia Technology Authority sets.

State agencies and the Department of Administrative Services, which handle procurement; the Georgia Technology Authority, which gains new listing and evaluation duties; and any company, including foreign-owned firms, subsidiaries, or resellers, that sells or seeks to sell goods, services, or technology to Georgia's state government.

State agencies would lose the ability to buy from a broader set of foreign-linked companies than before, tied to federal 'foreign adversary' designations rather than a short, named list of countries. Companies that violate the rule face large fines and losing state business, which could reshape who is eligible to sell to Georgia's government.

• Section 1 rewrites O.C.G.A. § 50-5-84.1, replacing the old Russia/Belarus definitions with new terms: 'concerned goods,' 'foreign company of concern,' and 'foreign country of concern' tied to the U.S. Commerce Department's foreign adversary list.
• Section 1 prohibits the state or any state agency from purchasing concerned goods from a foreign company of concern, a foreign country of concern, or a third-party reseller.
• Section 1 sets penalties for violations: a civil penalty of the greater of $250,000 or triple the purchase amount, contract termination, and a ban on bidding for future state contracts for a period set by the Georgia Technology Authority.
• Section 2 repeals O.C.G.A. § 50-5-84.2, which had restricted state contracting with companies owned by China.
• Section 3 amends the Georgia Technology Authority's general powers (O.C.G.A. § 50-25-4) to include maintaining a list of concerned goods and evaluating security risks from technology purchases.
• Section 4 repeals any conflicting laws.

1. 2025-05-09Effective Date 2025-07-01
2. 2025-05-09Act 86
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-08House Sent to Governor (House)
5. 2025-03-31House Agreed Senate Amend or Sub (House)
6. 2025-03-28Senate Passed/Adopted By Substitute (Senate)
7. 2025-03-28Senate Third Read (Senate)
8. 2025-03-21Senate Read Second Time (Senate)

• Lauren McDonald (R, HD-026)Primary sponsor
• Soo Hong (R, HD-103)
• Matthew Gambill (R, HD-015)
• Will Wade (R, HD-009)
• Alan Powell (R, HD-033)
• Josh Bonner (R, HD-073)
• Bo Hatchett (R, SD-050)

1. PassedHouse voteFebruary 27, 2025

   148 yea, 17 nay (7 not voting, 8 absent)

   Passage: House Vote #101

2. PassedSenate voteMarch 28, 2025

   51 yea, 0 nay (1 not voting, 4 absent)

   Passage By Substitute: Senate Vote #319

3. PassedHouse voteMarch 31, 2025

   146 yea, 18 nay (7 not voting, 9 absent)

   Agree To Senate Substitute: House Vote #354

• state procurement
• foreign adversaries
• national security
• government contracting
• technology purchasing