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Digest
HB 2409 prohibits Texas governmental entities from entering into contracts with Chinese companies for information and communications technology services. It defines "scrutinized companies" as businesses owned, controlled, or influenced by the Chinese government. Vendors must verify they do not contract with such companies. Violations result in contract termination, a five-year ban on future state contracts, and civil penalties. Additionally, vendors that falsify verification documents face state jail felony charges.
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