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Bill

HB 2403

Relating to a prohibition on governmental contracts with Chinese companies for certain information and communications technology; authorizing a civil penalty.

89th Legislature (2025) Introduced by Terri Leo-Wilson and 1 co-sponsor

Texas law would ban state government ICT contracts with Chinese companies and impose civil penalties for violations, restricting procurement options for state agencies.

Referred to State Affairs
#computers&software(s2425) #civilremedies&liabilities(i0065) #email&electroniccommunications(s0321) #electronicinformationsystems(i0311) #intergovernmentalrelations(i0447) #people'srepublicofchina(gn3a2) #purchasing--local(i0644) #purchasing--state(i0643) #stateagencies #boards&commissions(i0749)
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Bill Summary · HB 2403

Legislative bill overview

HB 2403 would prohibit Texas state government entities from entering into contracts with Chinese companies for information and communications technology (ICT) products and services. The bill establishes civil penalties for violations and creates enforcement mechanisms for this restriction.

Why is this important

This legislation reflects growing national security concerns about supply chain vulnerabilities and potential espionage risks associated with Chinese technology in government systems. The bill directly affects Texas procurement practices and could influence which vendors can bid on state ICT contracts, potentially impacting costs, competition, and technology options available to state agencies.

Potential points of contention

  • Definitional ambiguity: The bill's scope depends heavily on how "Chinese companies" and "certain ICT" are defined—unclear boundaries could create implementation challenges and legal disputes about which vendors qualify as restricted
  • Cost and availability: Restricting a major technology supplier may limit competition, increase procurement costs, or reduce access to specific technologies that state agencies currently rely on
  • Trade law concerns: Such restrictions could violate federal trade agreements or interstate commerce principles, potentially exposing Texas to legal challenges or federal preemption issues
  • Enforcement complexity: Determining actual Chinese ownership in complex corporate structures and global supply chains presents significant administrative burden and verification difficulties

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

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