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 company," "covered products or services," and outlines the responsibilities of state agencies, political subdivisions, and individuals regarding these products. Specifically, it prohibits state agencies and political subdivisions from acquiring or using such products, and it also restricts individuals from selling or installing them in commercial capacities. In emergencies, exceptions are allowed, but any such actions must be reported to the Attorney General.

Additionally, the bill empowers the Office of the Attorney General to investigate violations and impose civil penalties for noncompliance, with fines reaching up to $10,000 per day. More severe penalties, including felony charges, are outlined for knowingly transmitting data to the People's Republic of China using these banned products. The act also nullifies any existing contracts that violate its provisions and mandates an annual report from the Attorney General summarizing investigations and outcomes related to the enforcement of the act. The legislation will take effect upon the Governor's approval.