The proposed bill aims to prohibit certain business entities, specifically those identified as "scrutinized companies," from entering into public contracts with any public awarding authority in Alabama, particularly concerning information and communications technologies. A scrutinized company is defined as any entity on the Federal Communications Commission's Covered List or any subsidiary of such a company, which poses an unacceptable risk to national security. The bill mandates that public awarding authorities cannot contract with scrutinized companies or any companies that source technologies from them. Additionally, companies bidding for contracts must certify that they are not scrutinized companies and will not subcontract with them.

Violations of this act carry significant penalties, including a Class C felony charge for individuals knowingly violating the law, civil penalties up to $250,000, and a ten-year ineligibility to enter into contracts with public authorities. The Chief Procurement Officer is tasked with implementing rules to enforce the act, including procedures for challenging certifications. The bill also states that it will not be subject to further requirements under Section 111.05 of the Alabama Constitution, as it introduces a new crime. The act is set to take effect on October 1, 2024.