The 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. A "scrutinized company" is defined as one that is on the Federal Communications Commission's Covered List or is a subsidiary or parent company of such a listed company, which provides communications equipment or services deemed to pose an unacceptable risk to U.S. national security. The bill outlines that scrutinized companies are ineligible to bid on, propose, or enter into contracts for information or communications technologies with any public awarding authority. It also requires companies to certify that they are not scrutinized companies and will not subcontract with such companies for any aspect of contract performance.

The bill includes criminal and civil penalties for violations, with a Class C felony charge for knowing violations and civil penalties up to the greater of $250,000, twice the contract amount, or the amount of any losses suffered by the public awarding authority or the state. Additionally, violators would be ineligible to enter into any contract with any public awarding authority in Alabama for a period of 10 years. The bill mandates the Chief Procurement Officer to adopt rules for implementation, including procedures for challenging a company's certification and for ensuring contract compliance. The act is set to become effective on October 1, 2024, and is excluded from the requirements under Section 111.05 of the Constitution of Alabama of 2022, as it defines a new crime or amends an existing one.