SB 2234

This bill provides that the purpose of enacting the "Critical Infrastructure Protection Act"" (the ""Act"") is to ensure that critical technology infrastructure of this state is safe, secure, and free from influence and control by foreign adversaries. Technology Supplier Certification This bill requires t he chief procurement officer to require a technology supplier that submits a response to a solicitation for a contract for technology products, including contract renewals, to submit a sworn statement, under penalty of perjury, affirming that the supplier and, if applicable, any of its holding companies, affiliates, or subsidiaries are not o wned or controlled by a foreign adversary or domiciled in a foreign adversary country, a subcontractor of a foreign adversary, or p rocuring a techno logy product included in the covered list as part of its response. As used in the Act, a ""technology product"" means (i) a computer information product including computer equipment, routers, modems, tablets, hardware, software, telecommunications equipment, smart televisions, security related devices, data storage, and other related physical infrastructure; and ( ii ) s ervices related to the implementation, ongoing operation, or service or repair of such technology products, including cloud-based services . Finished Good Limitation – Third- P arty E xclusion – Reasonable A lternative E xclusion This bill prohibits s tate governmental entities from enter ing into contracts for finished goods with a technology supplier that is owned or controlled by a foreign adversary or domiciled in a foreign adversary country. State governmental entities must not enter into contracts for technology products included in the list of communications equipment and services that are deemed to pose an unacceptable risk to the national security of the United States or the security and safety of United States persons publ ished by the federal communications commission ("" covered list "") . However, this act does not apply to either of the following:  S tate contracts with third-party vendors that contract for technology products that certify compliance with the federal Secure and Trusted Communications Networks Act of 2019 .  C ontracts for technology products produced by a foreign adversary or included in the covered list if the chief procurement officer determines there is no reasonable alternative to procuring the technology products. Such determination must be made in writing and included in the procurement file for the finished goods or technology product, and as prescribed by the rules, policies, and procedures of the procurement commission. PROTECTION OF STATE LAND FROM FOREIGN ADVERSARIES ACT The purpose of enacting the ""Protection of State Land From Foreign Adversaries Act"" (the ""Act"" under this heading) is to prohibit a state agency from transfer ring an interest in state-owned real property to ( i ) a foreign adversary; ( ii ) a legal entity that is organized under the laws of or has its principal place of business in a foreign adversary country; ( iii ) a legal entity that is directly or indirectly owned, controlled, or directed by a foreign adversary; or ( iv ) a n agent, trustee, fiduciary, or inte rmediary acting on behalf of a foreign adversary or entity described in (i)-(iii). Prior to a transfer of state-owned real property, the Act requires a prospective transferee to submit a sworn statement to the applicable state agency, under penalty of perjury, affirming that the anticipated transfer is not in violation of the paragraph above. A transaction entered into in violation of th e Act is void and unenforceable. However, the Act does not apply to any of the following:  Transfers of state-owned real property expressly authorized or mandated by state or federal law or court order .  Transfers to entities that have received a valid waiver, license, or exemption from the United States secretary of commerce or another federal authority vested with such jurisdiction .  Transfers involving state-owned real property necessary for national defense, homeland security, or critical infrastructure as long as a pproval is obtained from the appropriate federal agency and w ritten approval is provided to the governor. Violations – Enforcement The Act authorizes the attorney general to i nvestigate a suspected violation, i ssue subpoenas and compel the production of documents, and i nitiate civil actions to enforce compliance or seek nullification of unlawful transactions. A person or entity that violates th e Act is subject to a civil penalty of up t o $250, 000 or twice the value of the transaction, whichever is greater; d isqualification from participating in future state property transactions for a minimum period of five years; and r eimbursement o f this state's enforcement costs, including attorneys' fees and investigation expenses. The attorney general may seek injunctive relief or other equitable remedies as necessary . FOREIGN ADVERSARIES As used in these Acts, a ""foreign adversary"" means a foreign government or non-government entity designated by the United States department of commerce as such, which presently includes all of the following:  The People's Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region (China) .  Republic of Cuba (Cuba) .  Islamic Republic of Iran (Iran) .  Democratic People's Republic of Korea (North Korea) .  Russian Federation (Russia) .  Venezuelan politician Nicolás Maduro (Maduro Regime). APPLICABILITY These Acts apply to contracts entered into, renewed, or amended on or after July 1, 2026."