PREFILED    DEC 19 2025

REFERENCE TITLE: telecommunications infrastructure; equipment requirements

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1046

Introduced by

Senator Rogers

AN ACT

amending title 18, Arizona Revised Statutes, by adding chapter 8; relating to information technology.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 18, Arizona Revised Statutes, is amended by adding chapter 8, to read:

CHAPTER 8

PROHIBITED TELECOMMUNICATIONS INFRASTRUCTURE

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE18-801. Definitions

In this chapter, unless the context otherwise requires:

1. "Critical telecommunications infrastructure" means all physical broadband infrastructure and equipment that meet all of the following requirements:

(a) Support the transmission of information of a user's choosing, regardless of the transmission medium or technology employed.

(b) Connect to a network that is owned by a publicly regulated utility and that allows the end user to engage in communications, including service provided directly to the public or to the classes of uses as to be effectively available directly to the public.

(c) Contain at least one microchip.

2. "Foreign adversary" Means The people's republic of China.

3. "Telecommunications provider" means any corporation, public or private, that offers telecommunications services.

4. "Telecommunications services" has the same meaning prescribed in section 9-581. END_STATUTE

START_STATUTE18-802. Critical telecommunications infrastructure; prohibited equipment; replacement; notification

A. A critical telecommunications infrastructure that is located within or that serves this state must be constructed without including any equipment that is manufactured by a foreign adversary.

B. A critical telecommunications infrastructure that is located within or that serves this state must be constructed without having any equipment that is manufactured in or by, including any equipment whose critical or necessary components are manufactured in or by, a foreign adversary, a state-owned enterprise of a foreign adversary, a company that is domiciled within a foreign adversary or a company that is owned by or where a foreign adversary is entitled to control the COMPANY by the company's governing documents, a foreign adversary state-owned enterprise or a foreign adversary-domiciled company.

C. A critical telecommunications infrastructure that operates within or that serves this state, including any critical telecommunications infrastructure that is not permanently disabled, must remove and replace all equipment that is prohibited by this section with equipment that is not prohibited by this section.

D. A telecommunications provider that removes, discontinues or replaces any prohibited telecommunications equipment or service is not required to obtain any additional permit from any state agency or political subdivision of this state to remove, discontinue or replace the telecommunications equipment or service if the state agency or political subdivision of this state is properly notified of the necessary removal, discontinuation or replacement and any replacement telecommunications equipment is similar to the existing telecommunications equipment. END_STATUTE

START_STATUTE18-803. Telecommunications providers; critical telecommunications infrastructure; corporation commission oversight; violations; civil penalties; prohibition on receiving state and federal monies

A. On or before January 1 of each year, each telecommunications provider shall certify to the corporation commission that all critical telecommunications infrastructure and equipment within the telecommunications provider's operation do not use or provide any telecommunications equipment or service that is prohibited by section 18-802.

B. A telecommunications provider that violates this section is subject to a civil penalty of at least $10,000 per day and not more than $100,000 per day of noncompliance with this section.

C. A telecommunications provider that knowingly submits a false certification pursuant to subsection A of this section is subject to a civil penalty of at least $10,000 per day and not more than $100,000 per day of noncompliance.

D. A telecommunications provider that fails to comply with this section is prohibited from receiving any state or local monies to develop or support new or existing critical telecommunications infrastructure and is prohibited from receiving any federal monies that are subject to distribution by state or local governments to develop or support new or existing critical telecommunications infrastructure. END_STATUTE

Sec. 2. Purpose

The purpose of this act is to secure Arizona's telecommunications grid and protect national security by eliminating from Arizona's telecommunications grid telecommunications hardware and software that come from foreign adversaries and sanctioned entities.

Sec. 3. Effective date

This act is effective from and after December 31, 2026.

Sec. 4. Short title

This act shall be known and may be cited as the "Secure Telecommunications Act of 2026".