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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: GOV DP 4-3-0-0 |
HB 2170: state contracts; foreign adversary; prohibition
Sponsor: Representative Diaz, LD 19
House Engrossed
Overview
Prohibits a company domiciled in the People's Republic of China and that is controlled by or majority owned by the People's Republic of China's government, military or ruling political party from attempting to enter into a contract with a state agency for electronic or information technology.
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).
A similar bill was introduced in the 57th Legislature, 1st Regular Session and was vetoed by the Governor (HB 2542 (state contracts; foreign adversary; prohibition).
Provisions
1. Prohibits a company domiciled in the People's Republic of China and that is controlled by or majority owned by the People's Republic of China's government, military or ruling political party from bidding on, submitting a proposal for or entering into a contract with a state agency for electronic or information technology. (Sec. 1)
2. Requires companies that submit a bid or proposal for a state contract for electronic or information technology to submit a certification letter to ADOA certifying that it is not a company domiciled in the People's Republic of China and that the company is not reselling products from a company that is domiciled in the People's Republic of China. (Sec. 1)
3. Specifies that if a certification letter is knowingly 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 electronic or information technology 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 electronic or information technology; and
b. not procuring the specific goods would pose a greater threat to Arizona than the threat associated with the manufacture of the electronic or information technology by a company domiciled in the People's Republic of China. (Sec. 1)
5. Defines pertinent terms. (Sec. 1)
6. Designates this act as the Protection Procurement Act. (Sec. 2)
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10. Initials ML/MN HB 2170
11. 1/28/2026 Page 0 House Engrossed
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