An Act to Prohibit State Contracts with Companies Owned or Operated by the Government of the People's Republic of China
Maine Legislature, Session 131, LD 0877
Committee Amendment CA_A_S621 (Senate)

COMMITTEE AMENDMENT " /) " to S.P. 374, L.D. 877, "An Act to Prohibit State
Contracts with Companies Owned or Operated by the Government of the People's Republic
of China"
Amend the bill by striking out the title and substituting the following:
'An Act to Increase Cybersecurity in Maine'
Amend the bill by strikmg out everything after the enacting clause and inserting the
following:
'See. 1. 5 MRSA c. 164 is enacted to read:
CHAPTER 164
CYBERSECUMTY AND PROTECTION OF CRITICAL INFRASTRUCTURE
S2021. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms
have the followine meanings.
1, Chief Information Officer. "Chief Information Officer" has the same meaning as
in section 1972, subsection 2.
2. Foreign adversary. "Foreign adversary" means a foreign government or foreign
nongovemment person whom the United States Secretary of Commerce has determined.
pursuant to 15 Code ofJFederal Regulations, Section 7.4 (2024\ has engaged in a lone-
term pattern or serious instances of^onduct significantly adverse to the national security
of the United States or the security and safety of United States persons.
3. Foreign adversary business entity. "Foreign adversary business entity" means
any tvne of organization, entity or enterprise engaged in commerce. whether operated for
profit, that is organized under the laws or mles of a foreign adversary, directly or indirectly
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "/L " to S.P. 374, L.D. 877 U) [c^-\
RO^j owned or controlled by a foreign adversary or domiciled within the geographic borders of
a foreien adversary.
4. Local eovernmental entity. "Local governmental entity" means any local
govemment, political subdivision or school district and any other public or private agency.
person, partnership, corporation or business entity actine on behalf of any local
governmental entity.
5. State agency. _"State agency" means the State, or any department, agency, board,
commission or other body of State Government, mcluding publicly funded mstitutions of
higher education.
S2022. Chief Information Officer to establish lists
The Chief Information Officer shall establish and maintain:
1. List of prohibited companies. A list of companies. including foreign adversary
business entities, that pose a national security risk or a risk to the security and safety of
persons of the United States. The list must include. but is not limited to. all companies
identified by statute, regulation or official guidance from the United States Department of
Commerce, the Federal Communications Commission, the United States Department of
Homeland Security or any other appropriate federal aeency as oosme a national security
risk or a risk to the security and safety of persons of the United States; and
2. List of prohibited information and communications technoloev and services.
A list^f infonnation and communications technoloev and services that pose a national
security risk or a risk to the security and safetyof persons of the United States. J"he list
must include, but is not limited to. all information and communications technology and
services identified by statute. regulation or official guidance from the United States
Department of Commerce, the Federal Communications Commission, the United States
Department of Homeland Security or any other apDropriate federal agency as oosine a
national security risk or a risk to the security and safety of persons of the United States.
The lists must be published on the publicly accessible website of the Department of
Administrative^nd Financial Services. Office of Information Technoloev and updated at
least annually.
§2023. Prohibited contract, use or purchase by state agency
Except as provided in sections 2027 and 2028, a state agency may not contract with a
company mcluded on the list of prohibited companies established and maintained by the
Chief Information Officer pursuant to section 2022, subsection 1 or use, obtain or purchase
any infonnation or communications technology or services included on the list of
prohibited information and communications technoloev and services established and
6 maintained by the Chief Information Officer pursuant to section 2022. subsection 2.
§2024. Prohibited contract, use or purchase by local eovernmeatal entity
8 Except as provided in section 2027. a local sovenunental entity may not use state funds
in a contract with a company included on the list of prohibited comuanies established and
maintamed bythe Chief Information Officer pursuant to section 2022. subsection 1 or use,
obtain or purchase any information or communications technoloev or services included on
the list of prohibited information and communications technology and services established
and maintained by the Chief Information Officer pursuant to section 2022. subsection 2.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " /L " to S,P. 374, L.D. 877
§2025. Indirect transfer of state funds
A local governmental entity, when purchasing information or communications
technoloev or services or enterm^intoa. contract for goods or services, shall take all
reasonable steps to ensure state funds are not mdirectlv transferred to a company on the list
of prohibited companiesjnaintamedbv^^^^^ Chief Infonnation Officer pursuant to section
2022. subsection 1.
§2026. Prohibited contract, use or purchase by judiciaLbranch and leeislative branch
Except as_Drovided in sections 2027. 2029 and 2030. an office of the legislative branch
or judicial branch may not contract with a company included on the list of prohibited
companies established and mamtajned by the Chief Information Officer pursuant to section
2022, subsection I or use, obtain or purchase any mformation or cpmmynications
technoloev or services included on the list of prohibited infonnation and communications
technology and services established and maintained by the Chief Information Officer
pursuantto section 2022. subsection 2.
§2027. Exemption; law enforcement
The prohibitions in sections 2023 and 2024 do not apply to law enforcement entities.
such as the State Police, a county sheriffs office and local law enforcement departments.
to the extent the prohibitions restrict a law enforcement entitY^abiUtY to protect the public
or mvestieate criminal activity.
§2028. Waiver of prohibitions; executive branch
Upon written request from a state agency, the Chief Information Officer may waive the
prohibitions imposed in sections 2023 and 2024 as long as the waiver does not pose a
national security risk ora.rjsk to the security and safety of persons of the United States.
§2029. Waiver of prohibitions: leeislative branch
The Leeislative Council, established in Title 3. section 161. or its designee. may waive
the prohibitions imposed in sections 2023 and 2024 as long as the waiver does not pose a
national security risk or a_riskto the security and safety of persons of the United States.
§203Q._Waiver of prohibitions: judicial branch
The State Court Admmjstrator under J'itle^t, section 15. or the State Court
Administrator's desienee, may waive the prohibitions imposed in sections 2023 and 2024
as long as theLwajyerdoes not pose a national security risk or a risk to the security and
safety of persons of the United States.
§2030-A. Certification required; civil violation
A person that submits a bid OT proposal for a contract with the State for goods or
services shall certify that the person is not a foreign_adversary_busmess entity. A person
tiiat submits a false certification under this section commits a civil violation for which a
fme may be adiudged in an amountthatis twice the amount of the contract for which the
8 bid or proposal was submitted or $250.000. whichever is greater.
S2030-B. Contracts void
The followme contracts enteredjntobyestate agencY on or after the effective date of
this chapter are void:
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "^ " to S.P. 374, L.D. 877^ ^-(j)^
1. Foreign adversary business entity. A contract with a foreign adversary business
entity;
2. Prohibited company. A contract with a company included on the list of prohibited
CQnmames established and maintained by the Chief Information Officer pursuant to section
2022. subsection I that was not granted a waiver under section 2028; and
3. Prohibited information or communications technoloev or services. A contract
to purchase information or communications technology or services included on the list of
prohibited information or communications technoloav or services established and
mamtained^bYthe Chief Information Officer jiursuant to section 2022, subsection 2 that
was not granted a waiver under section 2028.
§2030-0. Rules
The department may adopt rules to implement this chapter. Rules adopted pursuant to
this section are routine technical mles as defined m chapter 375. subchapter 2-A.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the majority report of the committee, replaces the bill and
changes the title. It requires the Chief Information Officer in the Department of
Administrative and Financial Services to establish and mamtain a list of companies that
pose a national security risk or a risk to the security and safety of persons of the United
States and a list of mfonnation and communications technology and services that pose a
national security risk or a risk to the security and safety of persons of the United States,
which must be published on the department's publicly accessible website and must be
updated at least annually. The Chief Information Officer must include on the lists
companies and information and communications technology and services identified as
posing a national security risk or a risk to the security and safety of persons of the United
States by statute, regulation or official guidance from appropriate federal agencies. With
certain exceptions, state agencies, local governmental entities, the judicial branch and the
legislative branch are prohibited from contracting with a company or using, obtaining or
purchasing information and communications technology and services included on the lists.
Law enforcement agencies are also exempt from the prohibitions in the law to the extent
the prohibitions restrict law enforcement agencies' ability to protect the public or
investigate criminal activity.
The amendment defines "foreign adversary" as a foreign government or foreign
nongovemment person that the United States Secretary of Commerce has determined has
engaged in a long-term pattern or serious instances of conduct significantly adverse to the
national security of the United States or the security and safety of persons of the United
States, The amendment also requires a person that submits a bid for a contract with the
State for goods or services to certify that the person is not a foreign adversary. If a person
submits a false certification, that person commits a civil violation for which a fine may be
adjudged in an amount that is twice the amount of the contract or $250,000, whichever is
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " /; " to S.P. 374, L.D. 877,
greater. The amendment also provides that a contract entered into on or after the effective
date of this legislation is void if the contract violates the prohibitions in the amendment.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 03/25/24 ^^d
LD 877 LR 1814(02)
An Act to Prohibit State Contracts with Companies Owned or Operated by the Government of the
People's Republic of China
Fiscal Note for Bill as Amended by Committee Amendment "/^/
Committee: State and Local Government
Fiscal Note Required: Yes
Fiscal Note
Potential current biennium cost increase - All funds
Minor revenue increase - General Fund
Minor revenue increase - Other Special Revenue Funds
Correctional and Judicial Impact Statements
This bill establishes new civil violations and may increase the number of civil suits filed in the court system. The
additional workload associated with the minimal number of new cases filed in the court system does not require
additional funding at this time.
The collection of additional fines and filing fees will increase General Fund or other dedicated revenue by minor
amounts.
Fiscal Detail and Notes
Prohibiting government agencies from contracting with companies or using or purchasing information and
communications technology and services that are identified by the Department of Administrative and Financial
Services as posing a national security risk or a risk to security of persons in the United States could increase costs to
the extent this prohibition limits access to lower cost goods, technology and services.
Additional costs to the Department of Administrative and Financial Services to establish and publish a list of
prohibited companies and a list of prohibited information and communication technology and services that.pose
security risks are expected to be minor and can be absorbed within existing budgeted resources.
LR1814(02) - Fiscal Note - Page 1 of 1