If enacted, this bill would introduce significant updates to Arizona's telecommunications regulations by establishing the "Secure Telecommunications Act of 2025." The bill mandates that all critical telecommunications infrastructure within the state must be constructed without any equipment that is federally banned or manufactured by a federally banned corporation or foreign adversary. It also requires the removal and replacement of any existing prohibited equipment in operation, with specific exemptions for telecommunications providers regarding permit requirements when replacing such equipment, provided they notify the relevant state agency.

Additionally, the bill imposes registration and reporting requirements for telecommunications providers, including the submission of a registration form to the Arizona Corporation Commission (ACC) and the payment of a potential registration fee. Providers must also certify annually that their infrastructure complies with the new regulations. Noncompliance could result in civil penalties ranging from $10,000 to $100,000 per day and disqualification from receiving state or federal funding for telecommunications infrastructure. The act is set to take effect on January 1, 2026, and aims to enhance the security of Arizona's telecommunications grid by eliminating equipment from countries deemed a national security risk.