SB220 Alabama 2024 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Session

Regular Session 2024

Title

Public contracts; prohibitions on public contracts with entities affiliated with the People's Republic of China, provided;

Summary

SB220 would bar Alabama state and local governments from contracting with Chinese-affiliated entities and impose criminal and civil penalties for violations.

What This Bill Does

It stops state and local public awarding authorities from awarding contracts to entities organized under the PRC or owned/operated by the PRC. It defines scrutinized companies and requires bidders to certify they are not scrutinized and that no subcontracting with scrutinized entities will occur, especially for information and communications technologies. Violations can void contracts, incur criminal penalties (Class C felony) for individuals, civil penalties up to $250,000 or twice the contract amount or losses, and a 10-year debarment from public contracts; enforcement is through the Attorney General and new procurement rules. The act becomes effective October 1, 2024 and is exempt from certain local expenditure requirements under Section 111.05 due to its criminal nature and defined exceptions.

Who It Affects

• Public awarding authorities (state and local) would be prohibited from contracting with PRC-affiliated entities and must follow the new certification and anti-scrutinized-entity requirements.
• Companies bidding on or entering into public contracts would need to certify they are not scrutinized, avoid subcontracting with scrutinized companies, and ensure ICT components do not originate from scrutinized entities.
• Scrutinized companies (PRC-linked entities) would be ineligible to bid on public ICT contracts and could be barred from receiving public funds.
• Enforcement bodies, including the Attorney General and the Chief Procurement Officer, would implement, oversee, and challenge certifications and compliance under the new law.

Key Provisions

• Prohibits any state or local public awarding authority from awarding contracts to entities organized under the laws of the PRC or that are owned or operated by the PRC.
• Defines 'scrutinized company' to include entities on the FCC Covered List or NDAA 2021 criteria and their subsidiaries/parents, and prohibits public funds transfers to these entities or to companies whose ICT originates from them.
• Requires bidders or contractors to certify: (a) they are not scrutinized, (b) they will not subcontract with scrutinized companies, and (c) ICT components do not originate from scrutinized companies.
• Violations trigger void ab initio contracts, criminal penalties (Class C felony) for knowingly violating, and civil penalties up to $250,000 or twice the contract amount or losses, plus a 10-year debarment from public contracts.
• Public awarding authorities must adopt implementing rules; authorities can challenge a company's certification and obtain determinations from the Chief Procurement Officer.
• Effective date is October 1, 2024.
• The bill is exempt from certain local expenditure requirements under Section 111.05 of the Constitution because it creates a new crime or modifies a crime definition.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bidding