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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: PS DP 4-2-1-0 | 3rd Read DPA 17-12-1-0House: ST DPA 4-3-0-2 |
SB 1027: critical telecommunications infrastructure; construction requirements
Sponsor: Senator Rogers, LD 7
Caucus & COW
Overview
Removes telecommunication software and hardware that originates from countries of concern from Arizona's telecommunications grid.
History
The Arizona Corporation Commission (ACC) maintains jurisdiction over most local telephone service, including quality of service. The scope of services the telecommunications industry provides includes local and long-distance telephone service, cellular service, paging services and internet services. The ACC establishes rules and regulations that telecommunication companies must follow. (ACC)
The Telecommunications program office is managed by the Arizona Department of Administration (ADOA) and is tasked with overseeing a statewide contract for telecommunication services and equipment, also known as AZNet. AZNet III is the office telecommunications program servicing all State of Arizona agencies, boards and commissions with outsourced voice and networking services and equipment, which are contracted at a predictable, user based monthly charge. (ASET)
Provisions
Critical Telecommunication Infrastructure
1. Prohibits critical telecommunications infrastructure that is located within or serving Arizona from being constructed with any equipment that is manufactured by a federally banned corporation or banned by the federal government. (Sec. 1)
2. Instructs that any critical telecommunications infrastructure in operation, or not fully disabled, must have all prohibited equipment removed and replaced with equipment that is not prohibited. (Sec. 1)
3. Exempts telecommunication providers from obtaining a new permit from any state agency or political subdivision to remove, discontinue or replace the telecommunication equipment, if the state agency or political subdivision is properly notified. (Sec. 1)
Telecommunication Requirements
4. Asserts any telecommunication provider who provides a service in this state must file a registration with the Corporation Commission. (Sec. 1)
5. Asserts the telecommunication provider will provide the ACC with the name, address, telephone number and email address of a person who has managerial responsibility in this state. (Sec. 1)
6. Requires the telecommunication provide to do the following:
a) If required by the ACC, submit a fee at the time of submitting a registration form;
b) Keep the information required current and notify the ACC of any changes to the information within sixty days;
c) On or before January 1 of each year, certify to the ACC that all critical telecommunication infrastructure and equipment does not use or utilize any equipment that is prohibited. (Sec. 1)
Penalties
7. Prescribes a civil penalty of at least $10,000 and no more than $100,000 a day for telecommunication providers who are found in violation of this Act. (Sec. 1)
8. Prescribes a civil penalty of at least $10,000 and no more than $100,000 a day for telecommunication providers who are found to have knowingly submitting a false registration form. (Sec. 1)
9. States that a telecommunications provider that fails to comply is prohibited from receiving any federal, state or local monies for the development or support of new or existing critical telecommunication infrastructure. (Sec. 1)
Miscellaneous
10. Defines critical telecommunications infrastructure to include all physical broadband infrastructure and equipment that supports the transmission of information of a user's choosing, regardless of transmission medium or technology. Critical telecommunication infrastructure includes technology that connects to a network to allow a user to engage in communication, including directly to the public. (Sec. 1)
11. Defines federally banned corporation means any company or designated equipment that is currently banned or that at any point in the future will be banned at the federal government level. (Sec.1)
12. Defines additional pertinent terms. (Sec. 1)
13. Contains an effective date of January 1, 2026. (Sec. 3)
14. Contains a purpose clause. (Sec. 2)
15. Designates this legislation with the short title Secure Telecommunications Act of 2025. (Sec. 4)
Amendments
Committee on Science and Technology
1. Removes language that defines federally banned corporation and constrains the definition of foreign adversaries, and consequently the applicability of this entire Act, to include only the People's Republic of China.
2. Changes the requirements for telecommunications providers to file with the ACC; instead of filing a registration form, they are to file a certification, and the required information to be filed with the ACC is reduced.
3. Removes the fee associated with the ACC filing.
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7. SB 1027
8. Initials TM Page 0 Caucus & COW
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