Relating to a prohibition on governmental contracts with Chinese companies for certain information and communications technology; authorizing a civil penalty.

HB 2403 prohibits Texas governmental entities from entering contracts for information and communications technology (ICT) services with "scrutinized companies," defined as Chinese-owned entities (including those organized in China, publicly traded with Chinese government control, or privately held with Chinese ownership). The bill directly affects Texas state agencies, local governments, and technology vendors meeting the "scrutinized company" definition. Exceptions require governor approval, and violations could trigger civil penalties. This policy aims to restrict ICT procurement from entities linked to the Chinese government, focusing on specific contractual relationships rather than broader business restrictions.