US HB7040

Renders surrogacy agreements void and unenforceable when the prospective parent is a citizen or permanent resident of a "foreign entity of concern" (nations listed under 10 U.S.C. § 4872(f)(2), which includes China, Russia, Iran, and North Korea)

Creates an exception for married couples where at least one prospective parent is a U.S. citizen or lawful permanent resident

Imposes criminal penalties on surrogacy brokers who knowingly or recklessly facilitate prohibited agreements, with fines and up to 1 year imprisonment

Requires custody of children born under invalidated surrogacy agreements to be determined by state law based on the child's best interests, disregarding the void contract

Establishes a presumption that agreements with foreign entity of concern nationals are surrogacy agreements even if they don't expressly address parental rights