If enacted, this bill would introduce significant updates to Arizona's telecommunications statutes by establishing the "Secure Telecommunications Act of 2026." The bill would prohibit the use of critical telecommunications infrastructure that includes equipment manufactured by a foreign adversary, specifically defined as the People's Republic of China. Telecommunications providers would be required to certify annually to the Arizona Corporation Commission that their infrastructure does not utilize any prohibited equipment. Additionally, the bill mandates the removal and replacement of any existing prohibited equipment, with civil penalties for noncompliance ranging from $10,000 to $100,000 per day.

The bill also includes provisions that exempt telecommunications providers from needing additional permits for the removal or replacement of prohibited equipment, provided they notify the relevant state agency. Furthermore, it bars non-compliant providers from receiving state or local funding for telecommunications infrastructure projects. The act is set to take effect on January 1, 2027, and aims to enhance the security of Arizona's telecommunications grid by eliminating hardware and software sourced from foreign adversaries.

Statutes affected:
Senate Engrossed Version: