SB 997: State procurement; creating the Procurement Protection Act of 2025. Emergency. - Oklahoma

Floor (House) → Floor (Senate) · 6 edits

MODERATE

The bill was amended during its passage from the House to the Senate floor, resulting in significant changes to definitions, eligibility criteria, and penalties. The Senate version expanded the definition of 'Company' to include affiliates and parent companies, broadened the list of 'Foreign adversaries' to include additional nations and entities, and modified the certification requirements for state contracts. Additionally, the penalty for false certification was increased from $250,000 to twice the contract amount or $250,000, whichever is greater.

Scope change

The bill's scope expanded to include affiliates and parent companies of foreign entities, and the definition of foreign adversaries was broadened to include additional nations and entities under Governor control.

DEFINITION

The definition of 'Company' was expanded to include affiliates, parent companies, and wholly-owned subsidiaries, not just the original entity.

The definition of 'Foreign adversary' was updated to include the Syrian Arab Republic and the Venezuelan regime of Nicolás Maduro, and added the option for the Governor to designate additional entities.

ELIGIBILITY

The eligibility criteria for state contracts were modified to include federally banned corporations as ineligible bidders.

REQUIREMENT

The certification requirement for state contracts was updated to require bidders to certify they are not companies listed under the new expanded eligibility restrictions.

The disclosure requirement was modified to include a 24-month lookback period for business operations involving foreign adversaries.

ENFORCEMENT

The penalty for submitting a false certification was increased to twice the contract amount or $250,000, whichever is greater.

SB997 (3-26-25) (FRIX) WDFA1.PDF → Floor (House) · 5 edits

MODERATE

The bill was amended to strengthen procurement protections against foreign adversaries, particularly China. Key changes include adding specific definitions for 'Control' that reference Chinese Communist Party influence, expanding the list of foreign adversary nations, and clarifying criteria for determining 'foreign adversary companies' based on ownership, location, and revenue thresholds. The amendments also add specific federal agencies whose bans apply under the law.

Scope change

The bill now explicitly includes China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria as foreign adversaries, and adds detailed criteria for determining when a company is controlled by or owned by foreign adversaries, particularly focusing on Chinese government influence.

DEFINITION

Added specific definition for 'Control' that includes involvement in governance, monitoring, or HR decisions of Chinese companies consistent with CCP objectives

Added comprehensive list of foreign adversary nations including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria

Added definition for 'Federally banned corporation' listing specific federal agencies and acts that impose bans

ELIGIBILITY

Modified criteria for 'foreign adversary company' to include specific control by Chinese government entities and added revenue threshold exemption

REQUIREMENT

Added new section requiring disclosure and penalties for procurement violations related to foreign adversary companies

SB997 (3-26-25) (FRIX) FA1.PDF → SB997 (3-26-25) (FRIX) WDFA1.PDF · 1 edit

MINOR

The bill version was updated from an initial draft (FA) to a working draft (WDFA) with a time change in the header. No substantive policy changes were made to the bill text itself.

TECHNICAL

The document timestamp was updated from 9:40 AM to 5:58 PM on the same date, indicating a revision or re-savng of the file rather than a policy change.

House Committee Substitute for Senate Bill → SB997 (3-26-25) (FRIX) FA1.PDF · 5 edits

MODERATE

The bill was amended to narrow the definition of 'foreign adversary' by removing specific references to Chinese government entities and replacing them with a broader definition based on U.S. State Department designations. The amendments also modify how 'control' is defined and remove certain exceptions for revenue thresholds that previously prevented some companies from being classified as foreign adversary companies.

Scope change

The bill's scope was narrowed by removing specific Chinese government entity definitions and replacing them with a more general definition based on U.S. government designations of hostile countries or countries of particular concern.

DEFINITION

The definition of 'Control' was modified to remove specific references to Chinese Communist Party instruments and replace them with a broader definition based on U.S. State Department designations of hostile countries or countries of particular concern.

The definition of 'Foreign adversary' was modified to remove specific Chinese government entities and replace them with a broader definition based on U.S. State Department designations.

The definition of 'Foreign adversary company' was modified to remove the revenue threshold exception that previously prevented some companies from being classified as foreign adversary companies.

REQUIREMENT

The requirement for state agencies to certify that bidding companies are not foreign adversary companies was modified to include political subdivisions.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute for Senate Bill · 4 edits

MODERATE

The bill was substantially rewritten from a proposed oversight committee substitute to a house committee substitute, with significant changes to definitions and eligibility criteria for procurement restrictions. The most notable substantive change is the modification of the 'foreign adversary company' definition to apply to entities rather than just parent companies, and the addition of a new section establishing specific eligibility restrictions for state contracts.

Scope change

The bill's scope remains focused on state procurement restrictions but the definitions and application criteria have been modified to broaden the entity definition and add new eligibility restrictions.

DEFINITION

Changed 'foreign adversary company' definition from applying to parent companies to applying to entities, with modified criteria for determining foreign adversary status based on revenue sources rather than just parent company characteristics.

Modified the definition of 'Government of China' to be placed after the foreign adversary company definition, with additional formatting changes.

ELIGIBILITY

Added new Section 3 establishing specific eligibility restrictions, prohibiting state agencies from contracting with state-owned enterprises of foreign adversaries, foreign adversary companies, or federally banned corporations.

TECHNICAL

Various formatting changes including page number updates, section numbering adjustments, and text reorganization throughout the document.

Engrossed → Proposed Committee Substitute (full committee) 1 · 5 edits

MODERATE

The bill was completely rewritten by the House Oversight Committee, replacing the original Senate version with a new version that significantly restructures definitions and requirements. The new version clarifies the definition of 'foreign adversary company' to exclude parent companies that don't meet specific criteria and adds detailed criteria for what constitutes a 'foreign adversary.' The substantive policy content remains largely the same, but the language has been reorganized and refined for clarity and consistency.

Scope change

The bill's scope remains focused on state procurement restrictions for companies from adversarial nations, but the definitions and criteria have been refined to provide clearer guidance on what entities are subject to restrictions.

DEFINITION

The definition of 'foreign adversary company' was significantly restructured to include specific criteria about domicile, headquarters, principal place of business, and government control, with added clarification about parent companies and subsidiaries.

The definition of 'Control' was added with specific references to the Investment Company Act of 1940 and Chinese Communist Party governance structures.

The definition of 'Foreign adversary' was updated with slightly different wording, changing 'Venezuelan regime of Nicolás Maduro' to 'Venezuelan regime of Nicolás Maduro, and the' to improve grammatical flow.

REQUIREMENT

The disclosure requirements for bids were reorganized and clarified, specifying exactly what information must be disclosed about foreign adversary connections.

TECHNICAL

The bill was completely replaced with a new Committee Substitute version, removing the original Senate text and replacing it with the House committee's revised language.

Amended And Engrossed → Engrossed · 3 edits · Mar 26, 2025

MINOR

The bill was amended to restructure its title and organization, removing the 'House Amendment' designation and consolidating the text into a cleaner Senate Bill format. The substantive policy content regarding procurement restrictions on foreign adversary companies remains largely intact, though some formatting and line breaks were adjusted for clarity.

Scope change

The bill's scope and applicability remain unchanged; the amendment primarily addresses formatting and organizational structure rather than policy substance.

TECHNICAL

Reorganized the bill's title and page numbering structure, removing 'ENGROSSED HOUSE AMENDMENT' header and consolidating into standard Senate Bill format.

Adjusted line breaks and spacing throughout the document for improved readability and standard formatting.

Removed duplicate or redundant section headers and page references that were present in the House Amendment version.

Introduced → Amended And Engrossed · 5 edits · Mar 26, 2025

MODERATE

The bill was amended to clarify definitions of 'foreign adversary company' and 'control,' add specific exemptions for entities with less than 50% revenue from foreign adversaries, and restructure the list of ineligible companies. These changes aim to refine the scope of companies prohibited from state contracts while maintaining national security protections.

Scope change

The bill's scope was narrowed by adding exemptions for entities that do not meet specific control criteria or derive more than 50% of revenue from foreign adversary countries.

DEFINITION

Added a new definition for 'Control' that includes specific criteria for Chinese companies based on governance structure and internal decisions.

Added new criteria for 'Foreign adversary company' including specific control by Chinese government entities and revenue thresholds.

ELIGIBILITY

Added an exemption clause stating entities are not considered foreign adversary companies if they do not meet control criteria and derive no more than 50% of revenue from foreign adversary countries.

Restructured the list of ineligible companies to remove specific subcategories and consolidate into broader categories of state-owned enterprises, foreign adversary companies, and federally banned corporations.

TECHNICAL

Changed formatting of dollar amounts and punctuation in penalty provisions and definitions.

State procurement; creating the Procurement Protection Act of 2025. Emergency.

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