Bill > HB2542

This bill creates a new law that prohibits companies domiciled in the People's Republic of China from bidding on, proposing, or entering into contracts with state agencies in Arizona. Companies must submit a certification letter stating they are not domiciled in China, and if found to have submitted a false certification, they will face significant penalties: a $100,000 civil penalty, contract termination, and a 60-month ban from bidding on state contracts. The bill provides a narrow exception where a state agency may contract with a Chinese company if no other procurement options exist and not doing so would pose a greater threat to the state. The law defines "company" broadly to include various business entities and their subsidiaries, and "domicile" is defined by factors such as registration, incorporation, headquarters location, and majority ownership. Notably, the law does not apply to the department of public safety. The bill is formally titled the "Protection Procurement Act" and is designed to limit state business interactions with companies from China.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/82364