The proposed bill establishes the Foreign Adversary Fraud Office within the Attorney General's Office, which will be responsible for pursuing legal claims against entities in Arizona suspected of violating consumer fraud laws related to technology produced by foreign adversaries. The bill also creates the Foreign Adversary Fraud Fund, which will be continuously appropriated and exempt from lapsing, allowing the Attorney General to use these funds for staffing, resources, and litigation costs. Additionally, it establishes the Foreign Adversary Technology Rip and Replace Fund to replace technology from foreign adversaries in critical infrastructure, with specific provisions for auditing and managing these funds.

Current statutes will remain unchanged, but the bill introduces new definitions and provisions, including the definition of "foreign adversary" and "critical infrastructure." It also includes a $500,000 appropriation from the state General Fund for the Fraud Fund in FY 2027, which is exempt from lapsing. The bill mandates the repeal of the Foreign Adversary Fraud Office and Fund by January 1, 2031, and the Rip and Replace Fund by January 1, 2032, ensuring a temporary framework for addressing these issues.

Statutes affected:
Introduced Version: 41-191.14, 41-4274, 35-190
Senate Engrossed Version: 41-191.14, 41-4274, 35-190