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Senate Engrossed
critical infrastructure; prohibited agreements |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SENATE BILL 1123 |
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An Act
amending title 44, Arizona Revised Statutes, by adding chapter 41; relating to critical infrastructure.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, Arizona Revised Statutes, is amended by adding chapter 41, to read:
CHAPTER 41
CRITICAL INFRASTRUCTURE
ARTICLE 1. PROHIBITED AGREEMENTS IN CONNECTION
WITH CRITICAL INFRASTRUCTURE
44-8031. Critical infrastructure; prohibited agreements; exception; threat designation; definitions
A. Except as provided in subsection B of this section, a business in this state or governmental entity in this state may not enter into an agreement involving critical infrastructure in this state with a company if both of the following apply:
1. 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.
2. The company is owned by or controlled by either of the following:
(a) citizens of China, Iran, north Korea or Russia.
(b) a company or other entity, including a governmental entity, that is 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 China, Iran, North Korea or Russia.
B. Subsection A of this section does not apply to a company if either of the following:
1. The committee on FOREIGn investment in the United States or its successor committee determines that there are no unresolved national security concerns regarding the transaction that created the company's ownership or allowed the company to operate within the United States.
2. The citizens described in subsection A, paragraph 2, subdivision (a) or (b) of this section are also citizens of the United States.
C. The governor, in consultation with the department of public safety, may DESIGNATE a country as a threat to critical INFRASTRUCTURE in this state.
D. For the purposes of this section:
1. "Company" means a sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate of those entities or business associations, that exists to make a profit.
2. "Critical infrastructure" has the same meaning prescribed in section 41-1801.