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, with potential civil penalties amounting to $250,000 or more, depending on the circumstances. Contracts found to be in violation will be void ab initio, and violators will be ineligible for public contracts for ten years. The Attorney General is authorized to take legal action against violators, and the Chief Procurement Officer is tasked with implementing rules to enforce the act. The bill is set to take effect on October 1, 2024, and is exempt from certain expenditure requirements under the Alabama Constitution due to its focus on defining new crimes.