Bill > HB1907

This bill establishes a comprehensive prohibition on government contracts with Chinese companies for information and communications technology (ICT), creating a robust legal framework to prevent such companies from doing business with Texas governmental entities. The bill defines a "scrutinized company" as one organized in China, principally based in China, or where the Chinese government can exercise significant control or ownership, and prohibits these companies from submitting bids or entering into contracts for ICT services with Texas governmental entities. Vendors must provide written verification that they are not a scrutinized company and will not procure products or services from such companies. If a vendor is found to have provided a false verification, the governmental entity must terminate the contract, and the vendor will be barred from state contracts for five years. The bill also imposes significant penalties, including a civil penalty equal to twice the contract amount or the state's loss, and establishes a criminal offense classified as a state jail felony for violations. The law will take effect on September 1, 2025, and will apply only to contract requests made public on or after that date, with exceptions allowed only in rare circumstances such as when no alternative vendors are available or the cost of finding an alternative would be disproportionately high.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1907