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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
VETOED
public monies; genetic sequencing; prohibition
Purpose
Prohibits the expenditure of public monies to pay for genetic sequencing procedures performed using a device produced by a company domiciled in a foreign adversary or by a company owned or substantially controlled by a company domiciled in a foreign adversary.
Background
The Arizona Department of Administration (ADOA) administers the state employee health insurance program and may expend appropriated public monies to procure health and accident insurance coverage for full-time state officers and employees, retired state employees, former elected officials and eligible dependents (A.R.S. §§ 38-651 and 38-651.01).
Genetic sequencing is a laboratory method that is used to determine the entire genetic makeup of a specific organism or cell type. This method can be used to find changes in areas of the genome, which may help scientists understand how specific diseases form. Results of genomic sequencing may also be used to diagnose and treat disease (NCI).
The U.S. Director of National Intelligence publishes an Annual Threat Assessment of the U.S. Intelligence Community that identifies the most direct and serious threats to the United States during the following year. The 2025 Threat Assessment identified the People's Republic of China, Russia, Iran and North Korea as countries that pose a risk to the national security of the United States (U.S. DNI).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the expenditure of public monies to pay for genetic sequencing procedures performed using a device produced by:
a) a company domiciled in a foreign adversary; or
b) a company owned or substantially controlled by a company domiciled in a foreign adversary.
2. Defines foreign adversary as the People's Republic of China, Russia, Iran, North Korea, Cuba, Venezuela, Syria or the Hong Kong Special Administrative Region and includes:
a) a country that is designated as a foreign adversary by the federal government; and
b) any agent or entity under significant control of a foreign adversary.
3. Defines domiciled as either:
a) the country in which a company is registered; or
b) the location in which the company's affairs are primarily completed or where a majority of ownership shares are held.
4. Defines genetic sequencing as any method to determine the identity or order of nucleotide bases in the human genome.
5. Defines company as a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, including a wholly owned subsidiary, majority owned subsidiary, parent company or affiliate of the entities or business associations or a nonprofit organization.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Governor's Veto Message
The Governor indicates in her veto message that gene sequencing devices are critical tools for diagnosing and developing specialized treatment and that health care providers invest millions in this technology. The Governor expresses concern that H.B. 2584 would increase health care system costs and that providers need sufficient time to audit and phase out gene sequencing devices.
House Action Senate Action
APPROP 2/11/26 DP 13-5-0-0 HHS 2/25/26 DP 4-3-0
3rd Read 2/23/26 38-19-3 3rd Read 4/8/26 16-12-2
Vetoed by the Governor on 4/13/26
Prepared by Senate Research
April 14, 2026
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