The "South Carolina Technology Security Act" aims to enhance the state's security by prohibiting the purchase, sale, or use of telecommunications and video surveillance equipment from certain companies identified as posing national security risks, including Huawei, ZTE, and others. The bill establishes definitions for "banned companies," "covered products or services," and outlines the responsibilities of state agencies, political subdivisions, and individuals regarding these products. Specifically, it prohibits state entities from acquiring or using such equipment and imposes penalties for violations, including civil fines and potential felony charges for knowingly transmitting data to the People's Republic of China.

Additionally, the act mandates that all container tracking technology must be reviewed and approved by a designated cybersecurity organization before use. It grants the Office of the Attorney General the authority to investigate violations and enforce compliance, including the ability to impose penalties. Any existing contracts that violate this act will be rendered null and void. The act will take effect upon the Governor's approval, and the Attorney General is required to submit an annual report detailing investigations and recommendations related to the enforcement of this legislation.