The Florida contracting ban most people search for as “SB 302” was actually enacted through a different bill. SB 302 from the 2023 session dealt with government investment practices and never became law on its own.1Florida Senate. Senate Bill 302 (2023) The foreign-entity contracting restrictions that draw attention came from Senate Bill 264, signed as Chapter 2023-33, which created Florida Statute 287.138. That statute bars state and local government agencies from entering contracts with entities tied to seven designated foreign countries when those contracts would give the entity access to personal identifying information, and it requires every bidder on a covered contract to submit a signed affidavit about its ownership.
Which Entities Are Covered
Section 287.138 lists seven foreign countries of concern: the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, North Korea, Cuba, Syria, and the Venezuelan regime of Nicolás Maduro.2Florida Senate. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited An entity falls under the ban if any one of three things is true: the government of a listed country owns it, that government holds a controlling interest in it, or the entity is organized under the laws of or has its principal place of business in a listed country.
“Controlling interest” means the power to direct a company’s management or policies through stock, contract, or any other arrangement. Direct or indirect ownership of 25 percent or more of the voting interests, or entitlement to 25 percent or more of the profits, creates a presumption of control.2Florida Senate. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited That 25 percent is a presumption, not a hard floor. Control can exist at lower ownership levels where board seats, contractual rights, or other mechanisms let the foreign entity actually direct decisions.
What Contracts the Ban Reaches
The prohibition is narrower than many summaries suggest. It applies only to contracts that would give the entity access to an individual’s personal identifying information.3The Florida Legislature. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited An agency buying office furniture from a company with Chinese ownership would not automatically violate the statute. A data-processing contract, a health records management agreement, or an IT services deal that routes personal data through the vendor’s systems sits squarely inside the ban.
“Governmental entity” is defined broadly. It covers any state, county, district, authority, or municipal body, together with departments, divisions, boards, bureaus, commissions, and any public or private entity acting on behalf of a public agency.3The Florida Legislature. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited School districts, water management districts, and special taxing authorities all qualify. If a unit of government in Florida handles personal data through a vendor, the vendor’s foreign ties matter.
Effective Dates and the 2025 Cutoff for Existing Contracts
The law phased in over two years:
- July 1, 2023: government entities could no longer knowingly enter new covered contracts with entities tied to a foreign country of concern.
- January 1, 2024: government entities could no longer accept bids, proposals, or replies from any entity without a signed affidavit confirming no prohibited foreign ties.
- July 1, 2025: existing covered contracts could no longer be extended or renewed, and affidavits became required for all renewals and extensions.2Florida Senate. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited
The July 2025 deadline is the one that caught vendors off guard. Contracts signed before the law passed were initially grandfathered, but that grace period has expired. Any covered contract still in effect had to end, or the foreign-entity connection had to be severed.
The Affidavit Requirement
Any entity bidding on or entering a government contract that involves access to personal identifying information must submit a signed affidavit. An officer or authorized representative signs under penalty of perjury, attesting that the entity is not owned by a foreign country of concern, does not have a government of a foreign country of concern holding a controlling interest, and is not organized under the laws of or headquartered in a listed country.3The Florida Legislature. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited
The signer must have authority to bind the company. In practice, the procuring agency provides the affidavit form inside its solicitation package. Before signing, review the full ownership chain. The 25 percent presumption means that indirect ownership by a foreign government through layered subsidiaries can disqualify a company. Keep corporate bylaws, shareholder registers, and organizational charts current so compliance can be verified before each bid.
Penalties for Violations
Enforcement sits with the Florida Attorney General, who may bring a civil action against any entity that violates the statute. The potential consequences include:3The Florida Legislature. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited
- A civil penalty of up to twice the amount of the contract the entity bid on, proposed for, or entered into.
- Ineligibility to enter, renew, or extend any contract, including grant agreements, with any governmental entity in Florida for up to five years.
- Ineligibility to receive or renew any license, certification, or credential issued by a governmental entity for up to five years.
- Placement on the state’s suspended vendor list under Florida Statute 287.1351.
Penalties collected go into the General Revenue Fund.3The Florida Legislature. Florida Code 287.138 – Contracting With Entities of Foreign Countries of Concern Prohibited A false affidavit does more than risk contract termination. It creates perjury exposure for the person who signed and triggers the full penalty menu for the company. A vendor that signs without investigating its own ownership structure could face a penalty worth double the contract value alongside a five-year ban from all Florida government work.
Related Restrictions to Keep on Your Radar
Chapter 2023-33 did more than regulate contracting. The same legislation created restrictions on foreign ownership of real property in Florida under Sections 692.203 and 692.204, including a general ban on real property purchases by persons and entities tied to the People’s Republic of China with a narrow residential exception for certain visa and asylum holders.4Florida Senate. Florida Code 692.204 – Purchase or Acquisition of Real Property by the People’s Republic of China Prohibited Those real property rules are separate from the contracting statute and apply even to parties who never bid on a government contract.
Federal procurement rules cover different ground. Section 889 of the Fiscal Year 2019 National Defense Authorization Act bars federal agencies from procuring certain telecommunications equipment or services from covered foreign entities and from contracting with companies that use such equipment as a core component of their systems.5Acquisition.GOV. Section 889 Policies The Bureau of Industry and Security maintains an Entity List restricting exports to specific foreign persons and organizations.6Bureau of Industry and Security. Part 744 – Control Policy: End-User and End-Use Based Florida’s law targets access to personal identifying information; the federal rules reach telecommunications equipment and export-controlled technology. A vendor can clear one framework and still fail the other, so compliance has to be tracked on both tracks.