ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: COM DP 4-3-0-0 | 3^rd Read 16-14-0-0 House: TI DP 8-3-0-0

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SB1658: critical infrastructure; prohibited agreements

Sponsor: Senator Rogers, LD 7

House Engrossed

Overview

Prohibits a business or a governmental entity in this state from entering into an agreement involving critical infrastructure in this state with a company owned by citizens of or headquartered in China, Iran, North Korea or Russia that would be able to access or control critical infrastructure. Outlines exemptions.

History

Critical infrastructure are systems and assets, whether physical or virtual, that are so vital to this state and the United States (U.S.) that the incapacity or destruction of those systems and assets would have a debilitating impact on security, economic security, public health or safety. The critical infrastructure information system is a program that uses advanced technologies to provide personnel who are involved in homeland security planning and operations with real-time information regarding critical infrastructure within this state and critical infrastructure located outside of this state that may affect the safety and well-being of citizens of this state (A.R.S. § 41-1801).

The Department of Public Safety (DPS) must establish and operate a statewide critical infrastructure information system. When DPS declares through written notice to all state agencies and local governments that the statewide critical infrastructure information system is operational, all state agencies and local governments must only use the statewide critical infrastructure information system and must not operate independent critical infrastructure information systems (A.R.S. § 41-1803).

Provisions

1. Restricts a business or a governmental entity in this state from entering into an agreement involving critical infrastructure in this state with a company if:

a) Under the agreement, the company, directly or remotely, would be able to access or control critical infrastructure in this state, except for access that is specifically allowed for product warranty and support purposes; and

b) The company is owned by or controlled by:

i. Citizens of China, Iran, North Korea or Russia; or

ii. A company or other entity, including a governmental entity owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea or Russia or that is headquartered in these countries. (Sec. 1)

2. Exempts a company from the outlined restrictions regarding agreements involving critical infrastructure if the U.S. Committee on Foreign Investment in the United States or its successor committee has determined that there are no unresolved national security concerns regarding the transaction that created the company's ownership or allowed the company to operate in the U.S. (Sec. 1)

3. Allows the Governor to designate a country as a threat to critical infrastructure in this state, in consultation with DPS. (Sec. 1)

4. Defines terms. (Sec. 1)

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8.                   SB 1658

9. Initials JB/LM        Page 0 House Engrossed

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