The proposed bill, if enacted, would amend current statutes by adding a new section to the Arizona Revised Statutes that prohibits foreign adversary companies from bidding on or entering contracts with state agencies for goods or services. It would require companies submitting bids to certify that they are not foreign adversaries. If a company submits a false certification, it would face a civil penalty, contract termination, and a ban from bidding on state contracts for five years. Additionally, the bill allows for exceptions where a state agency may contract with a foreign adversary company under specific conditions, such as the absence of reasonable alternatives and preapproval by the Arizona Department of Administration (ADOA).
The bill also introduces definitions for key terms such as "company," "foreign adversary," and "foreign adversary company," clarifying the criteria for what constitutes a foreign adversary. It establishes a civil penalty of $250,000 or double the contract amount for false certifications and outlines the conditions under which contracts with foreign adversaries may be permitted. Overall, the bill aims to enhance the state's procurement code by ensuring that state contracts are not awarded to entities deemed a threat to national security.
Statutes affected: Introduced Version: 41-2553