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SB1046 - 572R - S Ver
Senate Engrossed
telecommunications
infrastructure; equipment requirements
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1046
AN
ACT
amending title 18, Arizona Revised Statutes,
by adding chapter 8; relating to information technology.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section
1.
1. Title
18, Arizona Revised Statutes, is amended by adding chapter 8, to read:
CHAPTER
8
PROHIBITED
TELECOMMUNICATIONS INFRASTRUCTURE
ARTICLE
1. GENERAL PROVISIONS
START_STATUTE
18-801.
Definitions
In this chapter, unless the context otherwise
requires:
1. "Critical telecommunications
infrastructure" means all physical broadband infrastructure and equipment
that
meet all of the following requirements:
(
a
)
Support the transmission of information of a user's choosing,
regardless of the transmission medium or technology employed
.
(
b
)
Connect to a network
that is owned by a publicly
regulated utility and 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.
(
c
) Contain 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.
END_STATUTE
START_STATUTE
18-802.
Critical telecommunications infrastructure; prohibited equipment;
replacement; notification
A. A critical telecommunications
infrastructure that is located within or that serves 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 that serves 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 by
A foreign adversary or w
here a foreign adversary
is entitled to control
the COMPANY by the company's governing documents, a foreign adversary state-owned
enterprise or a foreign adversary-domiciled company.
C. A critical telecommunications
infrastructure that operates within or that serves this state, including any
critical telecommunications infrastructure that is not permanently disabled,
must remove and replace all equipment that is prohibited by this section 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 permit from any state
agency or political subdivision of this state to remove, discontinue or replace
the telecommunications equipment or service if the state agency or political
subdivision of this state is properly notified of the necessary removal,
discontinuation or replacement and any replacement telecommunications equipment
is similar to the existing telecommunications equipment.
END_STATUTE
START_STATUTE
18-803.
Telecommunications providers; critical telecommunications
infrastructure; corporation commission oversight; violations; civil penalties;
prohibition on receiving state and federal monies
A. On or before January 1 of each
year, each 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 18-802.
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 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 to develop or support new or existing critical telecommunications
infrastructure and is prohibited from receiving any federal monies that are
subject to distribution by state or local governments to develop or support new
or existing critical telecommunications infrastructure.
END_STATUTE
Sec.
2.
2.
Purpose
The purpose of this act is to secure
Arizona's telecommunications grid and protect national security by eliminating
from Arizona's telecommunications grid telecommunications hardware and software
that come from foreign adversaries and sanctioned entities.
Sec.
3.
3.
Effective
date
This act is effective from and after
December 31, 2026.
Sec.
4.
4.
Short
title
This act shall be known and may be
cited as the "Secure Telecommunications Act of 2026".