South Carolina H 4393: South Carolina Technology Security Act

Bill Text

2025-2026 Bill 4393 Text of Previous Version (Apr. 23, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4393

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE 
"SOUTH CAROLINA TECHNOLOGY SECURITY ACT" BY ADDING ARTICLE 29 TO CHAPTER 1, 
TITLE 1 SO AS TO PROHIBIT THE PURCHASE AND USE OF CERTAIN TELECOMMUNICATIONS 
EQUIPMENT, VIDEO SURVEILLANCE EQUIPMENT, OR HARDWARE OR SOFTWARE THAT IS 
MANUFACTURED OR DISTRIBUTED BY CERTAIN BANNED COMPANIES.

Whereas, the United 
States Department of Defense (DoD) has identified certain companies, including 
Huawei Technologies Company, ZTE Corporation, Hytera Communications 
Corporation, Hangzhou Hikvision Digital Technology Company (Hikvision), and 
Zhejiang Dahua Technology Company (Dahua), whose products and services may pose 
a risk to national security; and

Whereas, the State of 
South Carolina has a compelling interest in safeguarding its citizens, public 
agencies, and infrastructure from potential security vulnerabilities arising 
from the use of telecommunications and video surveillance technology; and

Whereas, it is in the 
interest of the State of South Carolina to prohibit the purchase, sale, or use 
of these products and services by public and private entities to ensure the 
safety and security of its people. Now, therefore,

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. This act may be cited as the "South Carolina Technology Security Act."

SECTION 2. Chapter 1, Title 1 of the S.C. Code is amended by 
adding:

Article 29

Statewide Provisions

 Section 
1-1-1910. (A) As used in this 
section:

 (1) 
"Banned company" means any Chinese-owned entity, including any subsidiaries, 
affiliates, or successor entities thereof including, but not limited to: Huawei 
Technologies Company, ZTE Corporation, Hytera Communications Corporation, 
Hangzhou Hikvision Digital Technology Company (Hikvision), and Zhejiang Dahua 
Technology Company (Dahua).

 (2) 
"Covered products or services" means, but is not limited to, 
telecommunications, video surveillance, or container tracking technology 
equipment, and any parts of such equipment that is manufactured, assembled, or 
distributed by a banned company.

 (3) 
"Person" means an individual, corporation, business trust, partnership, or any 
other legal or commercial entity.

 (4) 
"Political Subdivision" means all political subdivisions of this State, 
including school districts.

 (5) 
"State Agency" means any state office, department, board, commission, 
institution, or any other division of state government.

 (B)(1) No state agency or political 
subdivision may purchase, lease, or otherwise acquire covered products or 
services from a banned company.

 (2) 
No state agency or political subdivision may use or permit the use of covered 
products or services in the performance of a contract, grant, or any publicly funded 
project.

 (C)(1) No person in this State may offer 
for sale or sell any covered products or services from a banned company within 
the State of South Carolina.

 (2) 
No person in this State shall install or use any covered products or services 
from a banned company in any commercial capacity including, but not limited to, 
telecommunications infrastructure or security surveillance applications.

 (D)(1) In the event of an emergency 
declared by the Governor, a state agency, political subdivision, or person may 
acquire or use covered products or services if no other viable alternative is 
available, and the acquisition or use is strictly necessary for the protection 
of life or property. Any such acquisition or use must be immediately reported 
in writing to the Attorney General, with a detailed justification of the 
circumstances.

 (2) 
Notwithstanding subsection (E), it shall be unlawful for any person, state agency, 
or political subdivision to use covered products or services that remain in 
place pursuant to an existing contract for the purpose of transmitting data to 
the People's Republic of China, or to any country, person, or entity acting as 
an intermediary to facilitate such transmission.

 (E) 
All container tracking technology, regardless of source, must be reviewed and 
approved by the South Coast Cyber Center or another South Carolina based 
nonprofit cybersecurity organization that focuses on maritime cybersecurity 
before the container tracking technology is put into operation.

 (F)(1) The Office of the Attorney General, 
in coordination with any other relevant state authority, shall have the power 
to investigate any potential violations of this section and to bring civil or 
administrative actions to enforce compliance.

 (2)(a) A Person who knowingly violates the 
provisions of this section may be subject to a civil penalty not