SB3541 - Procurement Protection Act of 2024

• Prohibits companies domiciled in foreign adversary countries (China, Russia, Iran, North Korea, Cuba, Venezuela, Syria) and federally banned corporations from bidding on State or political subdivision contracts for goods and services.

• Requires all companies submitting bids or proposals to disclose whether they or their corporate parents/subsidiaries had business operations with foreign adversaries, state-owned enterprises, or foreign adversary companies within 24 months prior to bid submission.

• Imposes civil penalties of $250,000 or twice the contract amount (whichever is greater) for false certifications, includes contract termination, and bans violating companies from bidding on State contracts for 60 months.

• Creates stricter requirements for military-related contracts, extending the lookback period to 60 months and prohibiting any prior business with military entities, state-owned enterprises, or political parties of foreign adversaries.

• Allows limited exceptions for State agencies to procure goods from covered companies only if no reasonable alternative exists, the Department pre-approves the contract, and not procuring the good poses greater risk than the security threat of the good itself.