State agencies could not buy technology from China-controlled companies, with limited exceptions

A company based in China that is controlled or majority owned by China's government, military, or ruling party could not bid on or get a state contract for electronic or information technology. This applies to bids and proposals to state agencies for electronic or information technology. Every bidder must send the department a certification letter saying it is not based in China and is not bidding in order to resell technology from a company based in China. A company is based in China if it is registered, incorporated, headquartered, issued, or listed there, if its affairs are mainly completed there, or if most of its ownership is held there. For Chinese-based companies, controlled also includes involvement in governance, monitoring, or personnel decisions consistent with a Chinese Communist Party opinion on united front work with the private economy.

A company that knowingly submits a false certification letter would owe a $100,000 civil penalty, lose its contract, and be barred from bidding. This applies to companies the department determines knowingly submitted a false certification. The state agency or the department must end the contract with the company. The company cannot bid on any state contract for at least 60 months.

A state agency could still buy technology made by a company based in China if two conditions are met. This applies to a specific piece of electronic or information technology that a state agency wants to buy. There must be no other reasonable option for buying that specific technology. Not buying it must pose a greater threat to the state than the threat from it being made by a company based in China.