2025 - 2026 LEGISLATURE
LRB-1392/1
MPG:cdc&cjs
November 19, 2025 - Introduced by Representatives Dallman, Behnke, Callahan, Dittrich, Green, Knodl, Kreibich, Kurtz, Moses, Murphy, Mursau, O'Connor, Piwowarczyk and Wichgers, cosponsored by Senators Testin, Jacque, Marklein, Nass and Tomczyk. Referred to Committee on State Affairs.
AB662,1,2
1An Act to create 20.933 of the statutes; relating to: prohibiting state
2contracting with certain business entities and providing a penalty. Analysis by the Legislative Reference Bureau
This bill prohibits any state agency or other body in Wisconsin state government, including the legislature and the courts (state agency), from contracting with certain prohibited business entities. Specifically, the bill prohibits state agencies from contracting with any organization or enterprise whether or not operated for profit that satisfies any of the following:
1. Is primarily domiciled, incorporated, issued, or listed in a foreign country of concern.
2. Is headquartered in a foreign country of concern.
3. Has its principal place of business in a foreign country of concern.
4. Is controlled or is majority-owned by the government of the People’s Republic of China, the Chinese Communist Party, the Chinese military, or an instrumentality of any of the foregoing, including the State-owned Assets Supervision and Administration Commission of the State Council of the People’s Republic of China and the National Council for Social Security Fund of the People’s Republic of China.
5. Is a subsidiary of any of the business entities described above.
6. Sells the final products of a business entity described above to a state agency.
The bill defines “foreign country of concern” as a country designated by the U.S. Department of Commerce as a foreign adversary of the United States. Those countries currently include China, Cuba, Iran, North Korea, Russia, and Venezuela under the regime of Nicolás Maduro.
Additionally, the bill provides that no contract between any person and a state agency shall be valid, binding, and enforceable unless the person provides prior written certification to the state agency that the person is not a prohibited business entity and that the person has made every effort to ensure that the goods or services provided under the contract did not originate with a prohibited business entity. Moreover, if any person contracting with a state agency becomes a prohibited business entity, the person is for that reason considered to be in breach of contract, and the person must provide written notification of the breach to the state agency. The state agency may then terminate the contract and may pursue all appropriate legal remedies for the breach.
The bill charges the Department of Administration with receiving and investigating complaints of alleged violations of the bill’s contracting requirements. If DOA determines that a person has violated the bill’s requirements, all of the following apply:
1. The person is liable for a forfeiture equal to the greater of $250,000, an amount equal to twice the amount of the value of the relevant contract, or an amount equal to the total amount of all pecuniary losses suffered by any state as a result of the violation.
2. The person is ineligible to contract with a state agency for five years following the date of DOA’s determination of a violation.
Finally, the bill authorizes the Attorney General to enforce the bill’s requirements in court.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB662,1
1Section 1. 20.933 of the statutes is created to read: AB662,2,3220.933 Prohibiting state contracting with certain business entities. 3(1) Definitions. In this section: AB662,2,54(a) “Business entity” means any organization or enterprise engaged in 5commerce, whether or not operated for profit. AB662,3,26(b) “Contract” means to become a party to any agreement for the acquisition
1by purchase, lease, or barter of property, goods, or services for the direct benefit or 2use of any of the parties. AB662,3,33(c) “Department” means the department of administration. AB662,3,54(d) “Foreign country of concern” means a foreign adversary designated under 515 CFR 791.4. AB662,3,76(e) “Prohibited business entity” means a business entity that satisfies any of 7the following: AB662,3,981. Is primarily domiciled, incorporated, issued, or listed in a foreign country of 9concern. AB662,3,10102. Is headquartered in a foreign country of concern. AB662,3,11113. Has its principal place of business in a foreign country of concern. AB662,3,17124. Is controlled or is majority-owned by the government of the People’s 13Republic of China, the Chinese Communist Party, the Chinese military, or an 14instrumentality of any of the foregoing, including the State-owned Assets 15Supervision and Administration Commission of the State Council of the People’s 16Republic of China and the National Council for Social Security Fund of the People’s 17Republic of China. AB662,3,18185. Is a subsidiary of a business entity that satisfies subd. 1., 2., 3., or 4. AB662,3,20196. Sells the final products of a business entity described in subd. 1., 2., 3., 4., 20or 5. to a state agency. AB662,4,221(f) “State agency” means an association, authority, board, department, 22commission, independent agency, institution, office, society, system, or other body
1in state government created or authorized to be created by the constitution or any 2law, including the legislature and the courts. AB662,4,43(g) “Subsidiary” means a business entity that is majority owned, controlled, or 4operated by another business entity. AB662,4,65(2) Prohibited contracts. (a) No state agency may contract with a 6prohibited business entity. AB662,4,127(b) No contract between any person and a state agency shall be valid, binding, 8and enforceable unless the person provides prior written certification to the state 9agency that the person is not a prohibited business entity and that the person has 10made every effort to ensure that the goods or services being contracted for do not 11originate from a prohibited business entity. A state agency may rely on such 12certification without further investigation. AB662,4,1713(c) If any person contracting with a state agency becomes a prohibited 14business entity, the person shall be considered for that reason to have breached the 15contract, and the person shall without delay provide written notification of the 16breach to the state agency. The state agency may terminate the contract and may 17pursue all appropriate legal remedies for the breach. AB662,4,1918(3) Exemption. Subsection (2) does not prohibit a contract to which all of the 19following apply: AB662,4,2120(a) The goods or services offered under the contract are not obtainable by the 21state agency by other reasonable means. AB662,4,2322(b) The harm to the state in failing to execute the contract outweighs the 23public interests served by the prohibition under sub. (2). AB662,5,1
1(c) The contract is approved by the department. AB662,5,52(4) Complaints; forfeitures. Any person may file a complaint with the 3department alleging a violation of sub. (2) on a form prescribed by the department. 4The department shall investigate each complaint. If upon investigation the 5department determines a person has violated sub. (2), all of the following apply: AB662,5,76(a) The person shall be liable for a forfeiture equal to the greater of the 7following, as determined by the department: AB662,5,1092. An amount equal to twice the amount of the value of the contract on which 10the person submitted a bid or proposal. AB662,5,12113. An amount equal to the total amount of all pecuniary losses suffered by any 12state as a result of such violation. AB662,5,1413(b) The person is ineligible to contract with a state agency for 5 years following 14the date of the department’s determination of a violation. AB662,5,1615(5) Enforcement. The attorney general may bring an action in any court of 16competent jurisdiction to enforce this section.
