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Bill

Bill

LC 3898

Prohibit state procurement from chinese state-controlled technology manufacturers

2025 Regular Session

Montana bill would ban state technology purchases from Chinese state-controlled manufacturers to address security concerns, but faces cost, enforcement, and trade complication issues.

(LC) Draft Died in Process
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Bill Summary · LC 3898

Legislative bill overview

LC 3898 would prohibit Montana state government agencies from purchasing technology products and services from Chinese state-controlled manufacturers. The bill appears designed to address national security and supply chain concerns by restricting procurement contracts with entities deemed controlled by the Chinese government.

Why is this important

Government procurement policies affect both state budgets and supply chains. Such restrictions could increase costs for technology services, reduce vendor competition, and create compliance challenges for state agencies. This also reflects broader tensions between technological access, national security concerns, and international trade relationships.

Potential points of contention

  • Cost and availability: Restricting suppliers may limit options and increase procurement costs for taxpayers, as Chinese manufacturers often provide competitive pricing on hardware and components
  • Definition and enforcement: "State-controlled" is difficult to define precisely and verify; determining which companies qualify requires complex investigations with potential for legal disputes
  • Supply chain complexity: Many technology products contain components from multiple countries; purely excluding Chinese involvement may be technically impractical for certain purchases
  • Interstate commerce: Restrictions may conflict with federal commerce clause protections or trigger reciprocal restrictions against Montana businesses
  • Reciprocal trade effects: Could invite retaliatory measures against Montana exports or businesses operating internationally

Compiled from official sources — confirm details with the bill’s official record.

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