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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: PS DPA: 4-3-0-0 | Third Read 17-9-4-0 |
SB 1046: telecommunications infrastructure; equipment requirements
Sponsor: Senator Rogers, LD 7
Committee on Science & Technology
Overview
Prohibits a critical telecommunications infrastructure (Infrastructure) in Arizona from using equipment manufactured by a foreign adversary.
History
The Arizona Corporation Commission (ACC) maintains jurisdiction over most local telephone service, including quality of service. The scope of services the telecommunications industry provides includes local and long-distance telephone service, cellular service, paging services and internet services. The ACC establishes rules and regulations that telecommunication companies must follow (ACC).
The Telecommunications program office is managed by the Arizona Department of Administration (ADOA) and is tasked with overseeing a statewide contract for telecommunication services and equipment, also known as AZNet. AZNet III is the office telecommunications program servicing all State of Arizona agencies, boards and commissions with outsourced voice and networking services and equipment, which are contracted at a predictable, user based monthly charge (ASET).
Provisions
Prohibited Infrastructure Equipment
1. Requires Infrastructure that is in or serves Arizona to be constructed without including any equipment that was manufactured by a foreign adversary. (Sec.1)
2. Prohibits Infrastructure equipment manufactured in or by a:
a. foreign adversary;
b. state-owned enterprise of a foreign adversary;
c. company domiciled within a foreign adversary;
d. company owned by a foreign adversary;
e. foreign adversary entitled to control the company by the company's governing documents;
f. foreign adversary state-owned enterprise; or
g. foreign adversary-domiciled company. (Sec. 1)
3. Requires any Infrastructure in operation, or not fully disabled, to remove all prohibited equipment and be replaced with equipment in compliance with this legislation. (Sec.1)
4. Exempts a telecommunications provider that removes, discontinues or replaces any prohibited telecommunications equipment or service from acquiring any additional permits if they remove, discontinue or replace the equipment or service, if proper notification is given to the state agency or political subdivision. (Sec.1)
Provider Requirements
5. Instructs each Provider, by January 1 of each year, to certify to the ACC that all Infrastructure and equipment they operate does not use or provide prohibited service or telecommunication equipment. (Sec.1)
6. Prescribes a daily penalty of $10,000 and no more than $100,000 to a Provider that violates this legislation or knowingly submits false certification to the ACC. (Sec. 1)
7. Prohibits a Provider that fails to comply with this legislation from receiving any federal, state or local monies for the development or support of new or existing Infrastructure. (Sec.1)
8. Makes the legislation effective on January 1, 2027. (Sec.3)
9. Contains a purpose statement. (Sec. 2)
10. Cites this legislation as the Secure Telecommunications Act of 2026. (Sec. 4)
11. Defines pertinent terms. (Sec. 1)
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15. Initials TM SB 1046
16. 3/20/2026 Page 0 Science & Technology
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