Arkansas House Bill HB1789

Arkansas 2023 Regular Session

• Introduced: 3/29/23
• Refer: 3/29/23
• Report Pass: 4/3/23
• Engrossed: 4/4/23
• Refer: 4/5/23
• Report Pass: 4/6/23
• Enrolled: 4/10/23
• Chaptered: 4/12/23
• Passed: 4/12/23

Caption

To Prohibit Contracts With The Government Of The People's Republic Of China; To Amend The Law Concerning State Contracts; And To Amend The Duties Of The Office Of State Procurement.

Impact

If passed, HB 1789 would amend existing procurement laws, effectively prohibiting state contracts with scrutinized companies. The bill's implementation is anticipated to change the landscape of public procurement within the state, compelling agencies to review company affiliations closely and to avoid any partnership that might present risks associated with national security and data privacy for Arkansas residents. This reflects a growing trend observed in various states to take a more cautious position in dealings with Chinese companies.

Summary

House Bill 1789, known as the Technology Protection Act, is designed to limit Arkansas state agencies' ability to enter into contracts with companies that have ties to the government of the People's Republic of China (PRC). The bill arises from concerns regarding the implications of such contracts on Arkansas's security and privacy, stating that entities tied to the PRC could present risks due to their association with the Communist Party of China. Consequently, any state agency must ensure that bidders for contracts certify they are not 'scrutinized companies'—defined as those owned wholly or partially by the PRC government.

Sentiment

Discussions surrounding HB 1789 have been largely supportive from those advocating for stronger national security measures against perceived external threats. The consensus among proponents is that curtailing relationships with companies associated with the PRC will better protect Arkansas’s interests. However, opponents could express concerns regarding the increased bureaucracy and constraints this may introduce to state procurement processes, potentially limiting competition and the efficiency of public contracts.

Contention

A notable point of contention is the classification of companies as 'scrutinized', which could be viewed as arbitrary and potentially politically motivated. Some critics argue that the broad brush applied to entities connected to the PRC fails to consider the complexities and contributions of such businesses. The bill may face scrutiny as it raises questions about the balance between economic opportunity and security considerations, potentially leading to legal challenges regarding its provisions after enactment.