SB1123 is a bill that aims to restrict agreements involving critical infrastructure in Arizona with companies that are owned or controlled by citizens or governments of China, Iran, North Korea, or Russia. The bill prohibits businesses and governmental entities in Arizona from entering into agreements that would allow such companies to access or control critical infrastructure within the state, except for access specifically allowed for product warranty and support purposes. However, the bill exempts companies from this prohibition if the Committee on Foreign Investment in the United States (CFIUS) or its successor determines that there are no unresolved national security concerns regarding the company's ownership or operations in the United States. Additionally, the bill exempts dual citizens of the aforementioned countries and the United States from the prohibition and allows the Governor, in consultation with the Department of Public Safety, to designate other countries as threats to Arizona's critical infrastructure.

The bill also defines "company" as any profit-seeking business entity, including various forms of partnerships and corporations, as well as their subsidiaries and affiliates. "Critical infrastructure" is defined as systems and assets vital to Arizona and the United States, the incapacitation or destruction of which would have a debilitating impact on security, economic security, public health, or safety. The bill is set to become effective on the general effective date.