ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: GOV DP 4-3-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2170: state contracts; foreign adversary; prohibition

Sponsor: Representative Diaz, LD 19

Caucus & COW

Overview

Prohibits a company domiciled in the People's Republic of China from attempting to enter or entering into 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 Arizona. In addition, the Director of ADOA maintains programs for the inspection and acceptance of materials, services and construction (ADOA, A.R.S. § 41-2511).

Provisions

1.   Prohibits a company domiciled in the People's Republic of China from bidding on, submitting a proposal for or entering into 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 ADOA certifying that it is not 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 $100,000;

b.   the state agency or ADOA must terminate the contract with the company; and

c. the company cannot bid on any state contracts for at least 60 months. (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:

a.   there are no other reasonable options for the procurement of the specific goods; and

b.   not procuring the specific goods would pose a greater threat to Arizona than the threat associated with 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 of 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.   Designates this act as the Protection Procurement Act. (Sec. 2)

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11.  Initials ML/MN               HB 2170

12.  1/28/2026  Page 0 Caucus & COW

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