The Software and Information Industry Association (SIIA) has submitted a letter opposing Arizona’s HB2542, a bill that would prohibit state contracts with companies linked to foreign adversaries. While SIIA supports efforts to safeguard state procurement from undue foreign influence, the bill’s broad language risks disrupting supply chains, increasing costs for educational institutions, and limiting procurement options for state agencies. Additionally, the bill duplicates existing federal regulations, creating unnecessary compliance burdens for businesses and potentially deterring investment in the state.
To mitigate these concerns, SIIA urges the legislature to refine the bill by considering stakeholder input and ensuring alignment with federal rules. The association also recommends an exemption for U.S.-based publicly traded companies and their subsidiaries to prevent unintended economic consequences.
