|
House Engrossed Senate Bill
critical telecommunications infrastructure; construction requirements |
|
State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
|
|
SENATE BILL 1027 |
|
|
|
|
An Act
amending title 18, Arizona Revised Statutes, by adding chapter 7; relating to information technology.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 18, Arizona Revised Statutes, is amended by adding chapter 7, to read:
CHAPTER 7
PROHIBITED TELECOMMUNICATIONS INFRASTRUCTURE
ARTICLE 1. GENERAL PROVISIONS
18-701. Definitions
In this chapter, unless the context otherwise requires:
1. "Critical telecommunications infrastructure" means all physical broadband infrastructure and equipment that meets all of the following requirements:
(a) Supports the transmission of information of a user's choosing, regardless of the transmission medium or technology employed.
(b) Connects to a network that allows the end user to engage in communications, including service provided directly to the public or to the classes of uses as to be effectively available directly to the public, and that is owned by a publicly regulated utility.
(c) Contains at least one microchip.
2. "Foreign adversary" Means The people's republic of China.
3. "Telecommunications provider" means any corporation, public or private, that offers telecommunications services.
4. "Telecommunications services" has the same meaning prescribed in section 9-581.
18-702. Critical telecommunications infrastructure; prohibitions; replacement and permit requirements
A. A critical telecommunications infrastructure that is located within or is serving this state must be constructed without including any equipment that is manufactured by a foreign adversary.
B. A critical telecommunications infrastructure that is located within or is serving this state must be constructed without having any equipment that is manufactured in or by, including any equipment whose critical or necessary components are manufactured in or by, a foreign adversary, a state-owned enterprise of a foreign adversary, a company that is domiciled within a foreign adversary or a company that is owned or where a foreign adversary is entitled to control the COMPANY by the corporation's governing documents, a foreign adversary state-owned enterprise or a foreign adversary-domiciled company.
C. A critical telecommunications infrastructure in operation within or serving this state, including any critical telecommunications infrastructure that is not permanently disabled, must have all equipment that is prohibited by this section removed and replaced with equipment that is not prohibited by this section.
D. A telecommunications provider that removes, discontinues or replaces any prohibited telecommunications equipment or service is not required to obtain any additional permits from any state agency or political subdivision of this state to remove, discontinue or replace the telecommunications equipment or service as long as the state agency or political subdivision of this state is properly notified of the necessary replacements and the replacement telecommunications equipment is similar to the existing telecommunications equipment.
18-703. Telecommunications infrastructure oversight; corporation commission; civil penalties; prohibition on receiving state and federal monies
A. On or before January 1 of each year, A telecommunications provider shall certify to the corporation commission that all critical telecommunications infrastructure and equipment within the telecommunications provider's operation do not use or provide any telecommunications equipment or service that is prohibited by section 18-702.
B. A telecommunications provider that violates this section is subject to a civil penalty of at least $10,000 per day and not more than $100,000 per day of noncompliance with this section.
C. A telecommunications provider that knowingly submits a false certification that is required pursuant to subsection A of this section is subject to a civil penalty of at least $10,000 per day and not more than $100,000 per day of noncompliance.
D. A telecommunications provider that fails to comply with this section is prohibited from receiving any state or local monies for the development or support of new or existing critical telecommunications infrastructure and is prohibited from receiving any federal monies that are subject to distribution by state or local governments for the development or support of new or existing critical telecommunications infrastructure.
Sec. 2. Purpose
The purpose of this act is to secure Arizona's telecommunications grid and protect national security by eliminating telecommunications hardware and software from Arizona's telecommunications grid that comes from countries of concern and sanctioned entities.
Sec. 3. Effective date
This act is effective from and after December 31, 2025.
Sec. 4. Short title
This act shall be known and cited as the "Secure Telecommunications Act of 2025".