House Bill 2542, as presented at the caucus briefing, would establish the Protection Procurement Act to prohibit a company domiciled in the People’s Republic of China from bidding on, submitting a proposal for, or entering into a contract with a state agency for goods and services.

The bill would require any company submitting a proposal to certify in a written letter that it is not domiciled in China; a false certification would make the company liable for a $100,000 civil penalty and subject to contract termination. The bill provides exemptions if a state agency has no reasonable option to procure specific goods or if failure to procure particular goods would pose a greater threat to the state than the stated threat associated with procuring from a company domiciled in China. The Senate amendment exempts the Arizona Department of Public Safety from the restriction.

Mike Lynn (member) presented the bill summary and said he had not been notified whether the sponsor intends to concur with the Senate amendment. The caucus recorded no formal vote or direction on the bill during the meeting.