S.B. No. 1585 aims to prohibit governmental contracts with companies identified as foreign adversaries in the realm of information and communications technology, while also establishing civil and criminal penalties for violations. The bill amends Chapter 2275 of the Government Code to include a new subchapter specifically addressing contracts related to information and communications technology, alongside existing provisions for critical infrastructure. Key definitions are provided, including terms such as "foreign adversary," "scrutinized company," and "information or communications technology or service." The bill outlines the conditions under which governmental entities may contract with scrutinized companies, requiring written verification from vendors that they are not scrutinized and will not engage with such companies in fulfilling the contract.

Additionally, the bill establishes a framework for enforcement, including the termination of contracts if a vendor is found to have provided false verification, and the imposition of civil penalties based on the value of the terminated contract or the state's losses. Violations of the provisions can lead to criminal charges classified as state jail felonies. The new regulations will apply to contracts for which bids are solicited after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Government Code 2275.0101, Government Code 39.151 (Government Code 39, Government Code 2275)
Senate Committee Report: Government Code 2275.0101, Government Code 39.151 (Government Code 39, Government Code 2275)
Engrossed: Government Code 2275.0101, Government Code 39.151 (Government Code 39, Government Code 2275)
House Committee Report: Government Code 2275.0101, Government Code 39.151 (Government Code 39, Government Code 2275)