The proposed bill would update current telecommunications statutes by introducing the "Secure Telecommunications Act of 2025," which would prohibit the construction and operation of critical telecommunications infrastructure using equipment from foreign adversaries, specifically naming the People's Republic of China. It would require the removal of existing prohibited equipment and mandate annual certification from telecommunications providers to the Arizona Corporation Commission (ACC) to ensure compliance with these new requirements. The definitions of "critical telecommunications infrastructure" and "telecommunications provider" would be updated to include specifications regarding microchips and connections to publicly regulated utility networks.
Additionally, the bill would impose civil penalties for noncompliance, ranging from $10,000 to $100,000 per day, and would prevent noncompliant providers from receiving state or federal funding for telecommunications infrastructure development. It would also exempt telecommunications providers from needing additional permits for equipment replacements, provided they notify the relevant state agency. Overall, the legislation aims to enhance the security of Arizona's telecommunications infrastructure by eliminating reliance on equipment from foreign adversaries, with the act set to take effect after December 31, 2025.