Bill > H4393

This bill establishes the South Carolina Technology Security Act, which prohibits state agencies, political subdivisions, and persons within the state from purchasing, using, selling, or installing telecommunications, video surveillance, or container tracking technology from specific Chinese-owned companies deemed to pose national security risks, including Huawei, ZTE, Hytera, Hikvision, and Dahua. The legislation defines these companies as "banned companies" and their products as "covered products or services," and imposes strict restrictions on their acquisition and use across public and private sectors. In emergency situations, entities may temporarily use such products if no alternatives exist, but must immediately report this to the Attorney General. Violations can result in significant penalties, including civil fines up to $10,000 per day and potential felony charges with fines up to $50,000 and imprisonment for up to 25 years for knowingly transmitting data to China. The bill requires the Attorney General to submit an annual report on investigations and enforcement actions, and nullifies any existing contracts that conflict with these provisions. The legislation aims to protect state infrastructure and citizens from potential security vulnerabilities associated with technology from these specific companies, reflecting broader national security concerns about Chinese technology firms.