HB 2403 prohibits Texas governmental entities from contracting with Chinese companies for information and communications technology services. It defines "scrutinized companies" as those headquartered in China, majority-owned by the Chinese government, or under Chinese governmental control. The bill bans these companies from bidding on or securing government contracts related to information or communication services unless an exception is granted by the Governor of Texas. Government agencies must require vendors to verify that they are not using Chinese-controlled technology. Vendors found in violation face contract termination, a two-year ban from state contracts, and civil penalties, including fines up to twice the value of the contract. The law applies to new contracts starting September 1, 2025.