This bill establishes strict prohibitions against State contractors from selling, transferring, disclosing, or providing data to foreign adversaries. It mandates that any person or entity identified on a list created by the Department of the Treasury, which includes those determined to engage in such activities, will be ineligible to enter into or renew contracts with State agencies, subcontract with State contractors, or receive various forms of economic assistance, including tax abatements and development subsidies. The Department of the Treasury is tasked with developing and maintaining this list, which will be updated regularly, and it must provide notice and an opportunity for entities to contest their inclusion before they are added.

Additionally, the bill prohibits State agencies from engaging in financial relationships with institutions that are on the Treasury's list for similar data-related violations. It outlines penalties for entities that submit false certifications regarding their data practices, including significant fines and a five-year ineligibility period for contracting with the State. The bill aims to enhance national security by preventing sensitive data from falling into the hands of foreign adversaries and ensuring that State resources are not utilized in ways that could compromise security.