HB2170

THE CONTEXT: The Arizona Department of Administration (ADOA) was established to support the operation of state government, including the purchase of goods and services necessary to conduct business. The Director of ADOA supervises the procurement of all materials, services and construction needed by Arizona.

WHAT THE BILL DID: The final vetoed version would prohibit a company domiciled in the People's Republic of China and that is controlled by or majority owned by the People's Republic of China's government, military or ruling political party from bidding on, submitting a proposal for or entering into a contract with a state agency for electronic or information technology, require companies that submit a bid or proposal for a state contract for electronic or information technology to submit a certification letter to ADOA certifying that it is not a company domiciled in the People's Republic of China and that the company is not submitting the bid or proposal for a state contract for the express purpose of reselling to a state agency electronic or information technology from a company that is domiciled in the People's Republic of China, and specifies that if a certification letter is knowingly submitted that is false, all the following must occur: a; the company is liable for a civil penalty of $100,000; b; the state agency or ADOA must terminate the contract with the company; and c; the company cannot bid on any state contracts for at least 60 months.

WHY IT MATTERED: The practical reason for this bill was to give the people who rely on the rule clearer information and a defined reporting process. It would prohibit a company domiciled in the People's Republic of China and that is controlled by or majority owned by the People's Republic of China's government, military or ruling political party from bidding on, submitting a proposal for or entering into a contract with a state agency for electronic or information technology, and would also require companies that submit a bid or proposal for a state contract for electronic or information technology to submit a certification letter to ADOA certifying that it is not a company domiciled in the People's Republic of China and that the company is not submitting the bid or proposal for a state contract for the express purpose of reselling to a state agency electronic or information technology from a company that is domiciled in the People's Republic of China, rather than leave the current rule unchanged.