Texas HB129 prohibits contracts with foreign adversary companies and federally banned companies, with exceptions and penalties.

HB129 amends the Texas Government Code to prohibit governmental entities from contracting with foreign adversary companies and federally banned companies. These companies include those from specified countries and those restricted by federal sanctions. Vendors must certify they are not prohibited from bidding. False certifications result in contract termination and a civil penalty of up to twice the contract amount or $250,000. Vendors found in violation are barred from future state contracts for five years. The act applies to contracts solicited after its effective date of September 1, 2025.

Texas HB129 prohibits contracts with foreign adversary companies and federally banned companies, with exceptions and penalties.

HB129 amends the Texas Government Code to prohibit governmental entities from contracting with foreign adversary companies and federally banned companies. These companies include those from specified countries and those restricted by federal sanctions. Vendors must certify they are not prohibited from bidding. False certifications result in contract termination and a civil penalty of up to twice the contract amount or $250,000. Vendors found in violation are barred from future state contracts for five years. The act applies to contracts solicited after its effective date of September 1, 2025.