This bill aims to prohibit certain business entities from entering into public contracts with public awarding authorities in Alabama, particularly targeting companies that are influenced or controlled by the Chinese Communist Party (CCP). The bill identifies concerns about the CCP's authoritarian governance and the risks associated with dealings with commercial entities from the People's Republic of China (PRC), especially state-owned entities. It highlights the potential threats to Alabama's security and the privacy of its residents when engaging in business transactions with these entities, particularly in the realm of information and communications technologies.

The bill defines key terms such as "company," "information or communications technologies," "owned," "public entity," and "scrutinized company," the latter referring to companies that are on the Federal Communications Commission's Covered List or related to such companies. It sets forth that scrutinized companies are ineligible for public contracts involving information or communications technologies and requires companies to certify that they are not scrutinized companies and will not subcontract with such entities. Violations of the act result in the contract being void, the violator being guilty of a Class C felony, subject to civil penalties, and ineligible for public contracts for ten years. The bill also grants the Attorney General the authority to take legal action against violators and mandates the Chief Procurement Officer to adopt rules for implementation. The act is set to become effective on October 1, 2024.