Bill
Bill > A5678
summary
Introduced
05/15/2025
05/15/2025
In Committee
05/15/2025
05/15/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill prohibits State contractors from selling, transferring, disclosing, or providing data to a foreign adversary. Pursuant to the bill, a person or entity that sells, transfers, discloses, or provides data to foreign adversaries, or entities directly or indirectly controlled by, operating on behalf of, or significantly influenced by a foreign adversary, will be placed on a list by the Department of the Treasury and will not be permitted to contract with State agencies, subcontract with State contractors, file or renew a Public Works Contractor Registration, receive an economic development subsidy from the Economic Development Authority, be awarded a municipal property tax abatement, make or enter into a payment in-lieu of property tax agreement, apply for or receive a tax clearance certificate from the Division of Taxation, be certified as an urban renewal entity for purposes of the "Long Term Tax Exemption Law," or be designated as a redeveloper by a public agency for the purposes of the "Local Redevelopment and Housing Law." The bill also prohibits the State from banking with, having or holding stock, debt, or other equity investments of, or maintaining insurance coverage through a policy issued by a financial institution that has sold, transferred, disclosed, or provided data to a foreign adversary or an entity directly or indirectly controlled by, operating on behalf of, or significantly influenced by a foreign adversary.
AI Summary
This bill prohibits state contractors from selling, transferring, disclosing, or providing data to foreign adversaries, defined as foreign governments or nongovernment persons determined by the U.S. Secretary of Commerce to have engaged in conduct significantly adverse to U.S. national security. The Department of the Treasury will create and maintain a list of such entities, providing notice and an opportunity for comment before inclusion. Entities on this list will be ineligible for various state activities, including entering state contracts, receiving economic development subsidies, obtaining tax clearances, and being designated as urban renewal entities or redevelopers. The bill requires potential contractors to certify they are not on this list, with significant penalties for false certifications, including potential civil penalties up to $1,000,000 or twice the bid amount, contract termination, and a five-year ban from state activities. State agencies are also prohibited from banking with, investing in, or obtaining insurance from financial institutions on the list. Exceptions exist for data transmission required by legal obligations, legitimate international business transactions, and publicly available data. The law aims to protect state interests by preventing data sharing with entities that might pose national security risks.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee (on 05/15/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5678 |
| BillText | https://pub.njleg.gov/Bills/2024/A6000/5678_I1.HTM |
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