SB64: SB64 Local Government and State Government; certain transactions between government entities and certain foreign persons; prohibit

25 LC 55 0577S The Senate Committee on Rules offered the following substitute to SB 64: A BILL TO BE ENTITLED AN ACT To amend Titles 36 and 50 of the Official Code of Georgia Annot ated, relating to local1 government and state government, respectively, so as to prohibit certain transactions between2 government entities and certain foreign persons; to prohibit go vernment entities from3 acquiring foreign unmanned aircraft systems; to prohibit the use of state funds in connection4 with such unmanned aircraft systems; to prohibit government entities from operating such5 unmanned aircraft systems; to prohibit companies owned or operated by a foreign adversary6 from submitting a proposal for a contract with a state agency for goods or services; to revise7 and provide for definitions; to provide for related matters; to repeal conflicting laws; and for8 other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended12 by adding a new Code section to read as follows:13 "36-84-2.14 (a) As used in this Code section, the term:15 - 1 - 25 LC 55 0577S (1) 'Covered foreign entity' means an individual, business entity, or foreign government,16 or any subsidiary or affiliate thereof, that is:17 (A) Domiciled in the People's Republic of China or the Russian Federation; and18 (B) Under the influence or control of the government of the People's Republic of China19 or the Russian Federation.20 (2) 'Local government entity' means any political subdivision of this state or any21 department, agency, board, commission, or authority of any such political subdivision.22 (3) 'Small unmanned aircraft system' means an unmanned, powered aircraft that:23 (A) Is operated without the possibility of direct human intervention from within or on24 the aircraft;25 (B) Can be expendable or recoverable; and26 (C) Weighs less than 55 pounds, including the weight of anything attached to or carried27 by the aircraft.28 (b) On or after January 1, 2028, no local government entity sh all acquire or enter into a29 contract for the acquisition of a small unmanned aircraft syste m that is manufactured or30 assembled by a covered foreign entity.31 (c) On or after January 1, 2028, no state funds made available to any local government32 entity shall be used in connection with a small unmanned aircra ft system that is33 manufactured or assembled by a covered foreign entity.34 (d) Any local government entity that has acquired or entered i nto a contract for the35 acquisition of a small unmanned ai rcraft system that is manufactured or assembled by a36 covered foreign entity may continue to operate such small unmanned aircraft system until37 January 1, 2029; provided, however, that, after such date, no local government entity shall38 operate such a small unmanned aircraft system."39 - 2 - 25 LC 55 0577S SECTION 2.40 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended41 by revising Code Section 50-5-84.2, relating to contracting with companies owned by China,42 as follows:43 "50-5-84.2.44 (a) As used in this Code section, the term:45 (1) 'Company' means any sole proprietorship, organization, ass ociation, corporation,46 partnership, joint venture, limited partnership, limited liabil ity partnership, limited47 liability company, or other entity or business association, inc luding all wholly owned48 subsidiaries, majority owned subsidiaries, or parent companies, or affiliates o f s u c h49 entities or business associations, that exists for the purpose of making profit.50 (2) 'Foreign country of concern' means a country whose government is designated as a51 foreign adversary by the United States Secretary of Commerce pu rsuant to 15 C.F.R.52 Section 7.4.53 (3) 'Government of China' means the People's Re public of China le d by the Chinese54 Communist Party.55 (3)(4) 'Scrutinized company' means any company owned or operated by the government56 of China or a foreign country of concern or any company in whic h the government of57 China or a foreign country of concern has an ownership stake.58 (b) A scrutinized company shall be ineligible to, and shall not, bid on or submit a proposal59 for a contract, directly or through a third-party seller, with a state agency for goods or60 services, including, but not limited to, a contract for the pro curement or purchase of61 computers, printers, connecting cables, or interoperable videoconferencing services used62 in connection with an office environment.63 (c) A state agency shall require a company that submits a bid or proposal with respect to64 a contract for goods or services to certify that the company is not a scrutinized company.65 - 3 - 25 LC 55 0577S (d) If the Department of Administrative Services determines that a company has submitted66 a false certification under subsection (c) of this Code section:67 (1) The company shall be liable for a civil penalty in an amou nt that is equal to the68 greater of $250,000.00 or twice the amount of the contract for which a bid or proposal69 was submitted;70 (2) The state agency or the Department of Administrative Servi ces shall terminate the71 contract with the company; and72 (3) The company shall be ineligible to, and shall not, bid on a state contract."73 SECTION 3.74 Said title is further amended by adding new Code section to read as follows:75 "50-5-84.3.76 (a) As used in this Code section, the term:77 (1) 'Covered foreign entity' means an individual, business entity, or foreign government,78 or any subsidiary or affiliate thereof, that is:79 (A) Domiciled in the People's Republic of China or the Russian Federation; and80 (B) Under the influence or control of the government of the People's Republic of China81 or the Russian Federation.82 (2) 'Small unmanned aircraft system' means an unmanned, powered aircraft that:83 (A) Is operated without the possibility of direct human intervention from within or on84 the aircraft;85 (B) Can be expendable or recoverable; and86 (C) Weighs less than 55 pounds, including the weight of anything attached to or carried87 by the aircraft.88 (3) 'State agency' means a department, agency, board, commission, or authority of state89 government.90 - 4 - 25 LC 55 0577S (b) On or after January 1, 2028, no state agency shall acquire or enter into a contract for91 the acquisition of a small unmanned aircraft system that is manufactured or assembled by92 a covered foreign entity.93 (c) On or after January 1, 2028, no state funds made available to any state agency shall be94 used in connection with a small unmanned aircraft system that i s manufactured or95 assembled by a covered foreign entity.96 (d) Any state agency that has acquired or entered into a contr act for the acquisition of a97 small unmanned aircraft system that is manufactured or assemble d by a covered foreign98 entity may continue to operate such small unmanned aircraft system until January 1, 2029;99 provided, however, that, after such date, no state agency shall operate such a small100 unmanned aircraft system."101 SECTION 4.102 All laws and parts of laws in conflict with this Act are repealed.103 - 5 -