The proposed bill would significantly update current statutes regarding critical infrastructure in Arizona by introducing new provisions that prohibit software and equipment from companies headquartered in or controlled by foreign adversaries, as well as from federally banned corporations. It would require owners of critical infrastructure to notify the Attorney General (AG) of any proposed sale, transfer, or investment involving foreign adversaries, allowing the AG to investigate and potentially block transactions deemed a threat to security or public safety. Additionally, the bill mandates annual certifications from service providers regarding compliance with these regulations and establishes a list of prohibited technologies.

Moreover, the bill expands the definition of critical infrastructure and outlines specific conditions for governmental entities and companies to contract with foreign principals from foreign adversaries. It emphasizes the necessity for domestic data storage and processing, mandates background checks for employees with access to critical infrastructure, and prohibits foreign nationals from foreign adversaries from accessing such infrastructure. The updates aim to enhance the security and integrity of critical infrastructure in Arizona by limiting foreign influence and ensuring compliance with national security standards.

Statutes affected:
Introduced Version: 18-105, 41-197, 41-197.01, 197-01
House Engrossed Version: 18-105, 41-197, 116-124, 116-283