Bill > HB2170

This bill, titled the "Protection Procurement Act," prohibits companies domiciled in the People's Republic of China, especially those controlled by or majority-owned by the Chinese government, military, or ruling political party, from bidding on or entering into state contracts for electronic or information technology. Companies seeking such contracts must submit a certification letter confirming they are not from China and are not reselling products from Chinese companies. If a company knowingly submits a false certification, they will face a $100,000 civil penalty, contract termination, and a ban from state contracts for at least sixty months. However, exceptions exist if there are no other reasonable options for the required electronic or information technology, and not procuring it would pose a greater threat to the state than the risks associated with a Chinese-domiciled manufacturer. The bill defines "company" broadly to include various business structures and subsidiaries, "controlled" to encompass governance involvement aligned with Chinese Communist Party directives, "domicile" by registration, primary operations, or majority ownership, and "electronic or information technology" as defined in existing state law.

Government Affairs, Military Affairs and Security

https://apps.azleg.gov/BillStatus/BillOverview/83832