This bill establishes strict prohibitions against State contractors from selling, transferring, disclosing, or providing data to foreign adversaries, which are defined as foreign governments or entities that pose a threat to U.S. national security. The Department of the Treasury is tasked with creating and maintaining a list of individuals or entities that engage in such activities. Those identified on this list 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 bill also mandates that State agencies require contractors to certify that they are not on this list before engaging in any relevant activities.

Additionally, the bill prohibits State agencies from banking with or investing in financial institutions that have been identified as selling or disclosing data to foreign adversaries. The Department of the Treasury is required to adopt rules and regulations to implement these provisions, which aim to enhance the security of sensitive data and protect the interests of the State. The act is set to take effect immediately upon passage.