ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	House: GOV DP 4-3-0-0 | 3^rd Read 32-26-2-0 Senate: GOV 4-3-0-0 | 3^rd Read 17-13-0-0 Final: 32-24-4-0

---

HB 2542: state contracts; foreign adversary; prohibition

Sponsor: Representative Diaz, LD 19

Vetoed

Overview

Prohibits a company domiciled in the People's Republic of China from attempting to enter or entering a contract with a state agency for goods or services.

History

The Arizona Department of Administration (ADOA) was established to support the operation of state government including the purchase of goods and services necessary to conduct business.  The director of ADOA supervises the procurement of all materials, services and construction needed by the state.  In addition, the director establishes and maintains programs for the inspection and acceptance of materials, services and construction (A.R.S. § 41-2511, ADOA Website).

Provisions

1. Prohibits a company domiciled in the People's Republic of China from bidding on, submitting a proposal for or entering a contract with a state agency for goods or services. (Sec. 1)

2. Requires companies that submit a bid or proposal for a state contract for goods or services to submit a certification letter to the ADOA certifying that it was not with a company domiciled in the People's Republic of China. (Sec. 1)

3. Specifies that if a certification letter is submitted that is false all the following must occur:

a) the company is liable for a civil penalty of a specified amount;

b) the contract between the company and the state agency or department must terminate; and

c) the company must not bid on any state contracts for at least five years. (Sec. 1)

4. Allows a state agency to enter into a contract for goods manufactured by a company domiciled in the People's Republic of China if both of the following apply:

a) no other reasonable options exist for the procurement of the specific goods; and

b) a greater threat would exist to the state from not procuring the specific goods than the threat from the manufacture of the goods by a company domiciled in the People's Republic of China. (Sec. 1)

5. Exempts the Arizona Department of Public Safety from the prohibition on entering into a contract with a company domiciled in the People’s Republic of China for goods or services. (Sec. 1)

6. Defines company and domicile. (Sec. 1)

7. Entitles this act as the Protection Procurement Act. (Sec. 2)

8.

9.

10. ---------- DOCUMENT FOOTER ---------

11.                   HB 2542

12. Initials JH/SR     Page 0 Vetoed

13.

14. ---------- DOCUMENT FOOTER ---------