state contracts; foreign adversary; prohibition
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
House Bill 2170 prohibits companies domiciled in the People's Republic of China and controlled by its government, military, or ruling political party from bidding on or entering into contracts with Arizona state agencies for electronic or information technology. Companies submitting bids must certify they meet this criteria, and knowingly false certifications result in civil penalties, contract termination, and a ban from future state contracts for at least 60 months. However, exceptions may be made if no other reasonable options exist and procuring the technology wouldn't pose a greater threat to the state.
Key provisions
- Prohibits bidding on state contracts for electronic or information technology by companies domiciled in the People's Republic of China controlled by the Chinese government.
- Requires companies submitting bids to certify they meet the prohibition criteria.
- Imposes a $100,000 civil penalty for knowingly submitting false certification letters.
- Allows state agencies to enter into contracts with Chinese-domiciled companies only if no other reasonable options exist and it doesn't pose a greater threat.
- Defines ‘company’ broadly, including various business entities and subsidiaries.
- Defines ‘controlled’ based on the Investment Company Act of 1940 and Chinese governance structures.
- Defines ‘domicile’ as the country of registration, primary operations, or majority ownership.
- Defines ‘electronic or information technology’ using a related section definition.
Who is affected
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Sponsors
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1 on record
Primary sponsor
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