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SB 388

HOMELAND SECURITY: Authorizes review of state contracts for foreign adversaries and terrorist organizations. (gov sig) (EN NO IMPACT See Note)

2026 Regular Session Introduced by Beryl Amedée and 20 co-sponsors

Louisiana can cancel or suspend state contracts that involve foreign adversaries or foreign terrorist organizations, with mandatory certifications and emergency power for the gover

Signed by the Speaker of the House.
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Bill Summary · SB 388

Legislative Bill Summary — SB 388 (Louisiana, 2026)

Overview

  • Bill: SB 388
  • Session: 2026
  • Jurisdiction: Louisiana
  • Topic: Homeland security; protection of state contracts from foreign adversaries and foreign terrorist organizations; emergency governor powers to cancel contracts for cause
  • Status: Gov. signature requested (governor’s signature required to become law)

Primary Purpose and Intent

SB 388 seeks to shield Louisiana state contracts from involvement with foreign adversaries or foreign terrorist organizations (and their agents) and to grant the governor emergency powers to cancel or suspend such contracts for cause during declared emergencies. The bill adds new statutes establishing definitions, certification requirements, and review procedures to prevent state contracts from benefiting designated foreign entities and to provide swift action if a contract becomes tainted.

Key Provisions and Changes

Section 1: New authority and protections (R.S. 29:724.1)

  • Purpose and declarations:
    • If a state contract is later found to benefit a foreign adversary or foreign terrorist organization, the contract is deemed to provide material support to enemies of Louisiana and the U.S.
    • State policy: contracts benefiting foreign adversaries or foreign terrorist organizations are subject to cancellation for cause to protect health, safety, and security.
    • Continuing such a contract poses substantial risk to public safety, state security, and government integrity; the governor should have emergency power to terminate such contracts for cause.
  • Definitions (key terms):
    • Emergency: Governor receives notice from a state employee/public official of a public contract with a foreign adversary/foreign terrorist organization or their agents.
    • Foreign adversary: Foreign government or entity designated under federal rules (15 C.F.R. 791.4) or designated by the governor.
    • Foreign terrorist organization: As designated by U.S. State Department (8 U.S.C. 1189), or designated by the governor, or designated as SDN by U.S. Treasury.
    • State contract: Any contract, cooperative agreement, grant, subcontract, or procurement involving goods, services, infrastructure, technology, or IP with the state.
    • Beneficiary of a contract: Any party that would receive payment or benefit under the contract.

  • Governor’s emergency authority (during an emergency):

    • May suspend, restrict, refuse performance of, or cancel a state contract if:
    • A beneficiary is a foreign adversary or foreign terrorist organization; and
    • Continuation poses an unacceptable risk to state security, public health, safety, economic stability, or emergency preparedness.
    • Executive orders may specify subject contracts, suspend payments, delegate implementation, and establish compliance and due-process safeguards adapted to emergency needs.

  • Federal alignment and review:

    • Governor’s actions must be consistent with federal law; changes in federal designation during a contract should inform but not limit state action.

  • Judicial review:

    • Affected parties can seek judicial review; review focused on whether the governor’s action was arbitrary, capricious, or an abuse of discretion given emergency circumstances.

  • Procedural safeguards:

    • Before issuing an executive order, governor must consult with the Director of the Governor’s Office of Homeland Security and Emergency Preparedness and the Attorney General.
    • Within 48 hours of designation, governor must notify key legislative leaders and committees; the notice must include the order and summary, with redaction as necessary for security.

  • Duration and review:

    • A designation lasts for the emergency’s duration unless rescinded.
    • Affected entities may seek judicial review within 30 days.

Section 2: State contract prohibitions and certifications (R.S. 39:1602.3)

  • Application of definitions from Section 1.
  • Prohibition: State agencies shall not knowingly award or renew contracts where the beneficiary is a foreign adversary, its agents, a foreign terrorist organization, or its agents.
  • Mandatory certifications for bids/proposals:
    • Contractors must certify they are not or would not be beneficiaries of such contracts during the pendency of the contract.
    • Certification of no recent federal conviction (within past five years) for providing material support to a foreign adversary or foreign terrorist organization.
  • Certification placement: Included in all invitations to bid, RFPs, and procurement solicitations.
  • Consequences for false certification:
    • Termination for cause, damages recovery, and debarment for up to 25 years.
  • Enforcement:
    • Attorney General may pursue civil enforcement.
  • Limitation:
    • Provisions do not supersede federal law or infringe constitutional rights.
  • Narrow construction:
    • Applies solely to eligibility for state contracts.

Affected Parties

  • State agencies and their contracting activities in Louisiana.
  • Private entities bid on, propose for, or enter into Louisiana state contracts.
  • Potential beneficiaries of contracts who may be designated as foreign adversaries or foreign terrorist organizations.
  • Legislative bodies and committees involved in oversight and budget (notified when emergency designations occur).

Procedural and Timeline Details

  • Emergency designation process:
    • Governor consults with Homeland Security Office and Attorney General before designation.
    • Written notice to legislative leaders and key committees within 48 hours of designation.
    • Executive orders issued under emergency authority can be effective immediately.
    • Judicial review available on arbitrary or capricious standards.
  • Certification timeline:
    • Mandatory certifications required at the time of bid/proposal submission for all state contracts.
  • Effective date:
    • In effect upon the governor’s signature or upon lapse of the constitutional period if not signed; if vetoed and overridden, becomes effective the day after approval.

Potential Impacts and Considerations

  • Strengthens state-level screening against foreign influence in procurement.
  • Expands governor’s emergency toolkit to swiftly cancel or suspend contracts deemed risky.
  • Introduces standardized certifications to deter false representations about contract eligibility.
  • Could affect vendors with global ties or those facing complex designation processes; may require due diligence and rapid administrative action during emergencies.
  • Balances state security interests with due-process protections and federal law considerations.

If you’d like, I can provide a side-by-side comparison with existing Louisiana procurement law or model language for a quick briefing for stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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