The proposed bill aims to prohibit certain business entities, specifically those classified 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 or parent company of such entities, which are deemed to pose an unacceptable risk to national security. The bill mandates that public awarding authorities cannot contract with scrutinized companies or any companies that provide technologies originating from scrutinized companies. Additionally, companies bidding for contracts must certify that they are not scrutinized companies and will not subcontract with them.

The bill establishes criminal and civil penalties for violations, including a Class C felony for knowingly violating the act, which carries a civil penalty of up to $250,000 or twice the contract amount, along with a 10-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 a company's certification. The bill is set to take effect on October 1, 2024, and is exempt from further requirements under Section 111.05 of the Alabama Constitution, as it introduces a new crime.