AZ HB2542

Companies domiciled in the People's Republic of China must submit a certification letter to the state confirming they are not China-domiciled before bidding on or entering into state contracts for goods or services.

Companies that submit false certification letters face a $100,000 civil penalty, contract termination, and a 60-month ban from bidding on state contracts.

State agencies may contract with China-domiciled companies only if no other reasonable options exist for the specific goods and not procuring them would pose a greater threat to the state.

The Department of Public Safety is exempt from these requirements.

"Company" includes sole proprietorships, corporations, partnerships, joint ventures, and limited liability entities, as well as subsidiaries, parent companies, and affiliates of such entities.