The proposed bill, if enacted, would amend current statutes by adding a new section to the Arizona Revised Statutes that prohibits companies domiciled in and controlled or majority owned by the People's Republic of China from bidding on or entering into contracts with state agencies for electronic or information technology. It would require these companies to submit a certification letter affirming they are not domiciled in China or reselling Chinese products. Additionally, the bill outlines penalties for companies that submit false certifications, including a civil penalty of $100,000, termination of contracts, and a ban from bidding on state contracts for at least 60 months.
Furthermore, the bill allows state agencies to contract with companies from China only under specific circumstances, such as when there are no reasonable alternatives for the required technology, and not procuring it would pose a greater threat to the state than the risks associated with contracting with a Chinese company. The bill also defines key terms such as "company," "controlled," "domicile," and "electronic or information technology," and designates the legislation as the "Protection Procurement Act."
Statutes affected: Introduced Version: 41-2553
House Engrossed Version: 41-2553