The bill HB2436, known as the "Protection Procurement Act," amends Title 41, Chapter 23, Article 3 of the Arizona Revised Statutes by adding section 41-2559.01, which relates to the procurement code. The bill prohibits "covered companies" from bidding on, submitting proposals for, or entering into contracts with state agencies or political subdivisions of Arizona for goods or services. Covered companies are defined as those associated with foreign adversaries, state-owned enterprises of foreign adversaries, companies domiciled within foreign adversaries, federally banned corporations, or companies owned or controlled by foreign adversaries. The bill also requires companies to submit a certification letter to the Arizona Department of Administration (ADOA) confirming they are not a covered company.

The bill outlines penalties for companies that submit false or misleading certification letters or violate the prohibition on certain business operations within the last 60 months. Such companies will face a civil penalty of $250,000 or twice the amount of the contract involved, termination of the contract, and a ban from bidding on state contracts for at least 60 months. Additionally, the bill requires disclosure of any business operations involving contracts with or services from foreign adversaries or their entities within the last 24 months as part of the bid or offer for a state contract. The bill also allows for exceptions if no reasonable procurement options exist and the contract is preapproved by ADOA.

Statutes affected:
Introduced Version: 41-2559.01
House Engrossed Version: 41-2559.01