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Bill

Bill

HB 2409

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

89th Legislature (2025) Introduced by Briscoe Cain

Texas would ban government ICT contracts with Chinese companies, imposing civil and criminal penalties for violations to address cybersecurity and supply chain concerns.

Referred to State Affairs
#business&commerce--general(i0050) #computers&software(s2425) #civilremedies&liabilities(i0065) #crimes--miscellaneous(i0200) #electronicinformationsystems(i0311) #intergovernmentalrelations(i0447) #people'srepublicofchina(gn3a2) #politicalsubdivisions(i0588) #purchasing--local(i0644) #purchasing--state(i0643) #stateagencies #boards&commissions(i0749)
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Bill Summary · HB 2409

Legislative bill overview

HB 2409 would prohibit Texas government entities from entering into contracts with Chinese companies for information and communications technology (ICT). The bill authorizes civil penalties for violations and creates criminal penalties for violations by individuals, establishing a framework to exclude Chinese firms from state procurement.

Why is this important

Government procurement decisions affect both cybersecurity and economic competition. This bill reflects growing concern about supply chain vulnerabilities and foreign government influence on critical infrastructure, but could significantly limit vendor options and increase costs for state technology purchases.

Potential points of contention

  • Definition scope: The bill's definition of "Chinese company" and "information and communications technology" could be broadly or narrowly interpreted, affecting how many vendors are actually excluded
  • Cost and availability impacts: Restricting procurement to non-Chinese vendors may reduce competition, increase prices, and limit access to certain technologies where Chinese companies dominate manufacturing or components
  • Interstate commerce and trade law: Restrictions could conflict with federal commerce regulations or trigger legal challenges under trade law principles and existing federal procurement standards
  • Implementation burden: State agencies must verify vendor compliance and origins of components, creating administrative complexity and potential contract delays
  • Reciprocal trade concerns: Such restrictions could prompt retaliatory measures against Texas companies doing business internationally

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

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