TX SB1585

Prohibits "scrutinized companies" from bidding on or entering contracts with Texas governmental entities for information and communications technology or services, targeting companies on federal security risk lists or determined by the U.S. Secretary of Commerce to pose undue risk

Defines "foreign adversary" as the People's Republic of China or any country on the federal entity list (15 C.F.R. Part 744) due to national security or foreign policy concerns

Requires vendors bidding on IT contracts to provide written verification that they are not scrutinized companies, will not subcontract with scrutinized companies, and will not procure products or services originating from scrutinized companies

Allows exceptions with governor approval if no other vendors are available, costs would be disproportionately high, or the scrutinized company's involvement is de minimis and poses no security risk

Establishes enforcement penalties including contract termination, 5-year debarment from state contracts, civil penalties of twice the contract amount or actual state losses, and a state jail felony criminal offense for violations

Takes effect September 1, 2025, applying only to contracts solicited on or after that date