Relating to a prohibition on governmental contracts with companies of foreign adversaries for certain information and communications technology; authorizing a civil penalty; creating a criminal offense.
What changed between versions
Added new definition for 'Two-way communication' to clarify what constitutes bidirectional information exchange systems.
Expanded 'Foreign adversary' definition to include countries listed on the entity list under 15 C.F.R. Part 744.
Added new definition for 'Scrutinized company' to include companies on the FCC covered list and those subject to Commerce Department risk determinations.
Added new Section 2275.0203 requiring vendors to provide written verification that they are not scrutinized companies and will not contract with them.
Added new Section 2275.0204 establishing procedures for investigating false verification claims and determining violations.
Added new Section 2275.0205 allowing immediate contract termination and barring vendors from state contracts for five years following violation.
Added new Section 2275.0206 requiring the comptroller to debar violators from state contracts.
Added new Section 2275.0207 establishing civil penalties equal to twice the terminated contract amount or state losses.
Added new Section 2275.0208 creating a state jail felony criminal penalty for violations.
Added Section 7 specifying the bill takes effect September 1, 2025.
Added third exception allowing contracts with scrutinized companies if goods/services constitute a de minimis amount of total contract value.